When preparing Form 1099-NEC filings, it is important that you know what information you need to gather. We’ve compiled the following 4 key topics in our Form 1099-NEC Guide that may help you to correctly and timely complete your filing.
What’s new for Form 1099-NEC?
Excess Golden Parachute Payments
Excess golden parachute payments were moved from Form 1099-MISC to Form 1099-NEC, box 3.
Updated Threshold for E-filing Returns
The Taxpayer First Act of 2019 allowed the IRS to issue regulations to reduce the e-filing threshold from 250-forms down to just 10 forms. This is calculated by aggregating all information returns for the tax year.
Form 1099-NEC Guide – Key Topics
Our Form 1099-NEC guide identifies 4 key topics that will help you get started with your filing.
Determine who receives a Form 1099-NEC
Form 1099-NEC is issued to anyone paid $600 or more for services as a nonemployee, such as contractors, freelancers, or vendors, when the work was done in the course of the payer’s business. Individuals, partnerships, estates, and certain corporations, like attorneys, can receive it.
Always required, even below $600:
- When backup withholding occurred
- For excess golden parachute payments (starting in tax year 2025)
Other cases:
- Direct sales of consumer products totaling $5,000 or more may be reported on this form or Form 1099-MISC
Gather information
The information needed for preparing Form 1099-NEC includes the taxpayer names, addresses, and identification numbers for the filer and the recipient, as well as the amounts paid to the recipient.
Verify your information
It’s important to take the time to review the information you’ a’re reporting on your forms for accuracy before distributing and filing, including the payment amounts and taxpayer information. This will minimize the risk of incurring penalties and fines.
Distribute and file Form 1099-NEC
The IRS and recipient each require copies of the 1099-NEC form, as well as some state tax departments. Check out our Distribute and File Form 1099-NEC Guide to see where each copy goes.
Form 1099 Deadlines
As a best practice, we recommend starting your filings as early as possible. This ensures you have ample time to collect the required information, complete the necessary forms, and verify the information for possible typos and other errors.
The IRS filing season 2026 deadlines for tax year 2025 are as follows:
Please note that these are just the federal deadlines. Always verify with your state tax department for any state requirements and the proper submission methods.
Many states participate in the Combined Federal/State Filing program for the submission of Forms 1099-B, DIV, G, INT, K, MISC, NEC, OID, PATR, and R. Check if your state participates on our CF/SF list.
Conclusion
Use this Form 1099-NEC Guide along with our Essential Guide and become a master at your 1099-NEC filing. You can also learn more about the transmittal form for Forms 1099 by downloading our Form 1096 PDF Guide.
Lastly, be sure to get started on your 1099 filings as soon as possible to ensure that you’re ahead of the deadlines.
BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.
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