Which 1099 form do I need for independent contractors?

Form 1099-NEC
IRS Tax Form 1099-NEC. As of the 2020 tax year, the IRS Form 1099-NEC is the independent contractor tax form used by businesses to report payments to a contract worker in the previous tax year. This tax form for independent contractors is filed with the IRS and is also provided to the contractor for reporting income.

How does an independent contractor get a 1099?

You can order free hard-copy 1099-MISC forms from the IRS. Business owners can also generate and file 1099-MISCs through Square Payroll. Once you’ve filled out all your 1099-MISC forms, you need to fill out Form 1096 with a summary of all the 1099s you prepared, and send this to the IRS by January 31.

Do I need 1099 for independent contractor?

If you paid someone who is not your employee, such as a subcontractor, attorney or accountant $600 or more for services provided during the year, a Form 1099-NEC needs to be completed, and a copy of 1099-NEC must be provided to the independent contractor by January 31 of the year following payment.

Do I use 1099-MISC or 1099-NEC?

Beginning with the 2020 tax year, the IRS will require business taxpayers to report nonemployee compensation on the new Form 1099-NEC instead of on Form 1099-MISC. Businesses will need to use this form if they made payments totaling $600 or more to a nonemployee, such as an independent contractor.

How do I create a 1099 form for free?

Those who need to send out a 1099-MISC can acquire a free fillable form by navigating the website of the IRS, which is located at www.irs.gov. Once you’ve received your copy of the form, you’ll want to familiarize yourself with the various boxes that must be completed.

Where do I get a 1099 form?

To order these instructions and additional forms, go to www.irs.gov/EmployerForms. Caution: Because paper forms are scanned during processing, you cannot file certain Forms 1096, 1097, 1098, 1099, 3921, or 5498 that you print from the IRS website. Filing and furnishing.

What is the difference between a 1099-MISC and a 1099-NEC?

The 1099-NEC is now used to report independent contractor income. But the 1099-MISC form is still around, it’s just used to report miscellaneous income such as rent or payments to an attorney. Although the 1099-MISC is still in use, contractor payments made in 2020 and beyond will be reported on the form 1099-NEC.

Can I print 1099-NEC on plain paper?

1099-MISC & 1099-NEC Payer Copies Payer 1099 Copies are for record purposes only. These can be printed on plain paper or the four part perforated paper.

How do you fill out a 1099 for a contractor?


  • Address
  • Social security number
  • Federal tax classification
  • How do you make 1099 form?

    Copy A goes to the IRS. If your state has income tax,you will also need to send Copy 1 to the appropriate state tax department.

  • Copy B goes to the independent contractor,and you may also need to send them Copy 2 so that they can file it along with their other state income tax
  • Copy C is for your records.
  • What forms do you need to hire an independent contractor?

    Form W-9. The IRS requires contractors to fill out a Form W-9,request for Taxpayer Identification Number and Certification,which you should keep on file for at least four years

  • Form 1099-MISC.
  • A Written Contract.
  • Invoices.
  • Independent Contractor vs.
  • Helpful Link
  • How to become a 1099 contractor?

    Independent contractors and freelancers must comply with several laws. By Stephen Fishman,J.D.

  • Make Sure You Really Are an IC.
  • Choose a Business Name.
  • Get a Tax Registration Certificate.
  • Getting a Vocational License.
  • Pay Estimated Income and Self-Employment Taxes.
  • As Your Business Grows.