Prepare Form 1099-NEC for IRS Reporting

Once you are ready to begin your tax filing, you must gather the required information to prepare Form 1099-NEC. This includes information for the business, or payer, and recipient, or payee, as well as the amounts paid to the recipient.

Form 1099-NEC is used to report nonemployee compensation amounts to the IRS. A nonemployee is defined as a person or business who is not employed by your company, such as independent contractors, freelancers, or outsourcing companies.

What information is needed to prepare form 1099-NEC?

Business Information

To prepare Form 1099-NEC you will need to include the following information:

  • Federal Employer ID Number
  • Business Name
  • Business Address

Recipient’s Information

Before completing a 1099-NEC form for any non-employee, have them fill out a W-9 form. A W-9 form, like W-4s for employees, will provide you with the relevant information for the recipient such as their name, address, and tax identification number.

Payment Amounts

The IRS instructs that a Form 1099-NEC, Nonemployee Compensation, must be completed each person who, in the previous tax year, has been paid for certain amounts.

It is recommended to view the IRS instructions for the amount types and their corresponding box number, as these are susceptible to change year to year.

Be sure to report each payment in the proper box because the IRS uses this information to determine whether the recipient has properly reported the payment.

Next Steps

Once you have gathered information to prepare form 1099-NEC you can:

Or you can learn more about Form 1099-NEC filing and become a master at reporting using our downloadable PDF Guide below.

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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