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1099-NEC

Form 1099-NEC: What You Need to Know

Any business, regardless of size, that pays at least $600 for services performed in the course of their trade or business by a person who is not their employee is required to file Form 1099-NEC.

1099-NEC Filing Options

We've made it easy to use to file your 1099-NEC forms through Yearli. Simply create a Yearli account, enter or import your data, review, update and validate your data, then checkout. It's that easy. We'll file your forms to the IRS, applicable state agency and send copies to your recipients.

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Filing Requirements

Must be provided to the IRS, applicable state agency and recipient.

IRS

State

Recipient

What to Report

  • Payments for services performed for a trade or business by people not treated as its employees. Ex: Subcontractors. $600 or more
  • Direct sales of consumer goods for resale. $5,000 or more
  • Rent or royalty payments; prizes and awards that are not for services, such as winnings on TV or radio shows. $600 or more, except $10+ for royalties
  • Payments to crew members by owners or operators of fishing boats, including payments of proceeds from sale of catch. All amounts
  • Fish purchases paid in cash for resale. $600 or more
  • Substitute dividends and tax-exempt interest payments reportable by brokers. $10 or more
  • Crop insurance proceeds. $600 or more
  • Gross proceeds paid to attorneys. $600 or more
  • Payments to a physician, physicians' corporation or other supplier of health and medical services. Issued mainly by insurance plans or medical assistance programs. $600 or more
  • Section 409A deferrals and income from non-qualified deferred compensation plans. All amounts ($600+ if deferrals)

Who Needs to File?

Any business which pays for various services performed by an individual who is not an employee.

Why File?

The IRS requires that all income is reported by businesses and individuals or penalties could apply.

Yearli Q&A

Deadlines

Deadlines and requirements vary by state. Use our deadline calculator for the latest federal, state and recipient deadlines for this filing season.

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Patrick G. | October 22, 2024
Very easy and cost effective method of filing a Form 941
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