File 1099-NEC Online for Contractors and Freelancers
Report nonemployee compensation to the IRS quickly and accurately. Our IRS-authorized platform validates your data, checks for errors, and transmits your 1099-NEC forms electronically.
File 1099-NEC NowWhat Is a 1099-NEC?
The 1099-NEC (Nonemployee Compensation) is an IRS information return used to report payments of $600 or more made to individuals or entities that are not your employees. The form was reintroduced in 2020 to replace Box 7 of the 1099-MISC, which previously captured nonemployee compensation.
The 1099-NEC is the most commonly filed 1099 form in the United States. If your business pays independent contractors, freelancers, or other non-employees for services, you almost certainly need to file this form. For a deeper explanation, see our guide on what is a 1099-NEC.
Who Needs to File 1099-NEC?
You must file a 1099-NEC if all of the following conditions are met:
- You made a payment to someone who is not your employee.
- The payment was for services performed for your trade or business.
- The payment was made to an individual, partnership, estate, or in some cases a corporation.
- The total payments to that recipient during the calendar year were $600 or more.
Common recipients include independent contractors, freelance designers, consultants, attorneys, and subcontractors. For a complete overview, see who needs to file a 1099.
1099-NEC Filing Requirements
Each 1099-NEC must include the following information:
- Payer information — Your business name, address, and taxpayer identification number (TIN).
- Recipient information — The recipient's name, address, and TIN (SSN or EIN).
- Box 1: Nonemployee compensation — The total amount paid during the tax year.
- Box 4: Federal income tax withheld — Any backup withholding applied to the payments.
- State information — State tax withheld and state identification number, if applicable.
You must provide Copy B to the recipient and file Copy A with the IRS. Our platform handles both steps for you.
How to File 1099-NEC with Thomas Ledger
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Create Your Account
Sign up at Thomas Ledger and enter your business details. Your payer information is saved and applied to every form you create.
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Add Recipients
Enter each contractor's name, address, TIN, and payment amount. For multiple recipients, use our bulk upload feature to import data from a CSV or Excel file.
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Validate and Review
Our system checks every form for missing fields, TIN formatting issues, and amount thresholds. Review flagged items and make corrections before filing.
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Submit to the IRS
Transmit your 1099-NEC forms directly to the IRS through the IRIS system. You will receive confirmation once the IRS accepts your filing.
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Deliver Recipient Copies
We can print and mail Copy B to your recipients, or you can deliver them electronically through our platform with recipient consent.
1099-NEC Filing Deadlines
The 1099-NEC has the same deadline for both recipient copies and IRS submission:
- January 31 — Deadline to furnish Copy B to recipients.
- January 31 — Deadline to file Copy A with the IRS (whether filing electronically or on paper).
If January 31 falls on a weekend or holiday, the deadline moves to the next business day. For a full list of dates, see when are 1099s due.
Penalties for Late or Incorrect Filing
The IRS imposes penalties for failing to file 1099-NEC forms on time or filing with incorrect information. Penalty amounts depend on how late the filing is:
- $60 per form — Filed within 30 days of the deadline.
- $130 per form — Filed more than 30 days late but before August 1.
- $330 per form — Filed after August 1 or not filed at all.
Intentional disregard of filing requirements can result in penalties of $660 per form with no maximum cap. Learn more about 1099 penalties.
Why File 1099-NEC with Thomas Ledger?
Filing 1099-NEC forms involves handling sensitive taxpayer data under strict IRS deadlines. Our platform is built specifically for this — not repurposed from a general tax product.
- IRS-authorized e-file provider — We transmit directly to the IRS through the IRIS system. No intermediaries, no delays.
- TIN verification — Check recipient TINs against IRS records before you file to avoid B-notices and penalty risk.
- Built for volume — Whether you file 5 or 5,000 forms, our bulk filing and CSV import tools scale with you.
- Corrections handled — Need to fix a filed return? Submit corrected 1099-NEC forms directly through our platform.
- Enterprise-grade security — 256-bit encryption, SOC 2 compliance, and TIN masking protect your data at every step. Learn more about our security.
See our pricing page for per-form rates and volume discounts.
Frequently Asked Questions
What is the difference between 1099-NEC and 1099-MISC?
The 1099-NEC reports nonemployee compensation — payments to independent contractors, freelancers, and other non-employees for services. The 1099-MISC reports other income types like rents, royalties, and prizes. Before 2020, both were reported on the 1099-MISC. See our full comparison at 1099-NEC vs 1099-MISC.
Do I need to file a 1099-NEC for payments under $600?
No. The IRS only requires a 1099-NEC when total payments to a single recipient reach $600 or more during the calendar year. Payments below that threshold do not need to be reported on a 1099-NEC, though the recipient is still required to report the income on their tax return.
Do I need to file 1099-NEC for payments to corporations?
Generally, no. Payments to C-corporations and S-corporations are exempt from 1099-NEC reporting. The main exception is payments to attorneys — legal fees of $600 or more must be reported regardless of the attorney's corporate structure. Collect a W-9 from every contractor to determine their entity type before filing.
Can I e-file 1099-NEC or do I have to paper file?
You can e-file. In fact, the IRS requires e-filing if you submit 10 or more information returns in aggregate. Even below that threshold, e-filing is faster, more accurate, and gives you instant confirmation. Our platform handles the entire e-filing process through the IRS IRIS system.
What happens if I miss the January 31 deadline?
Late filings incur IRS penalties that increase the longer you wait: $60/form within 30 days, $130/form after 30 days, and $330/form after August 1. Intentional disregard carries a $660/form penalty with no cap. File as soon as possible to minimize penalties. See 1099 penalties for full details.