Filing 1099-NEC
Form 1099-NEC (Nonemployee Compensation) is used to report payments of $600 or more made to non-employees, such as independent contractors, freelancers, and self-employed individuals.
When to file
- To the IRS: By March 31 (electronic filing)
- To recipients: By January 31
Step 1: Create a new filing
- From your dashboard, click New Filing
- Select 1099-NEC as the form type
- Choose the Tax Year (e.g., 2025)
- Click Create Submission
This creates a draft submission where you'll add your recipient records.
Step 2: Add recipients
Click Add Recipient to add a 1099-NEC record. You'll need to enter:
Payer information (your business)
- Payer's EIN -- format: XX-XXXXXXX
- Payer's name -- your business name
- Payer's address -- street, city, state, ZIP
Recipient information (the person/business you paid)
- TIN type -- SSN, EIN, ITIN, or ATIN
- Recipient's TIN -- their tax identification number
- Name -- first name and last name (for individuals) or business name
- Address -- street, city, state, ZIP
- Account number (optional) -- your internal reference number
1099-NEC amounts
| Box | Description | Required? |
|---|---|---|
| Box 1 | Nonemployee compensation | Yes |
| Box 2 | Payer made direct sales of $5,000+ | No (checkbox) |
| Box 4 | Federal income tax withheld | No |
| Box 5 | State tax withheld | No |
| Box 6 | State/payer's state number | No |
| Box 7 | State income | No |
Box 1 is the main field -- enter the total amount you paid to this recipient during the tax year. At least Box 1 or Box 4 must have a value.
Step 3: Review your records
After adding recipients, review the list on the submission page. Each record shows:
- Recipient name and masked TIN
- Address
- Box 1 amount and any tax withheld
You can delete records that have errors and re-add them.
Step 4: Validate
Click Validate to check your submission before sending. The system checks:
- Your business profile is complete
- TCC is configured
- All required fields are filled
- EIN/TIN formats are correct
Fix any errors shown before proceeding.
Step 5: Submit to IRS
Click Submit to IRS to file your 1099s. The system will:
- Generate the IRS-formatted XML
- Authenticate with the IRS system
- Submit your transmission
- Return a Receipt ID -- save this for your records
Step 6: Track status
After submission, click Check Status to see if the IRS has processed your filing:
| Status | Meaning |
|---|---|
| Processing | IRS is reviewing your submission |
| Accepted | All records accepted successfully |
| Accepted with Errors | Some records accepted, some had issues |
| Rejected | Submission was rejected -- check error details |
IRS name rules
The IRS has strict rules for names in 1099 forms:
- Person names can only contain letters, numbers, spaces, and hyphens
- No apostrophes (O'Malley must be entered as OMalley)
- No special characters (#, @, &, etc.)
Our system automatically cleans names to meet IRS requirements.
Next step
Learn about payment options to complete your filing.