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IRS Form

1099-NEC

Nonemployee Compensation

E-File Now All Forms
Filing Deadline
February 01, 2027
Reporting Threshold
$2,000 or more
Who Files
Businesses paying independent contractors
How-To Video

How to File Form 1099-NEC: Step by Step

File your 1099-NEC with the IRS in about 10 minutes on Tax Form Hero. No software to install, no subscription — create an account and follow these six steps.

  • 1
    Create your free account

    Sign up at Tax Form Hero — there is no signup fee and no subscription. You only pay when you transmit a form. Existing users can log in and jump straight to the dashboard.

  • 2
    Add your payer (business) details

    Enter the payer's legal name, EIN or SSN, address, and contact phone exactly as they appear on IRS records. You can save multiple payers under one login and reuse them every tax year.

  • 3
    Add your recipients (contractors)

    Add contractors one at a time, or bulk import hundreds at once using our Excel/CSV template. Pull the recipient's legal name, TIN, and address from the Form W-9 they gave you.

    Tip: run TIN Matching ($0.49/check) before you file. A name/TIN mismatch is one of the most common causes of IRS penalty notices.
  • 4
    Enter the 1099-NEC amounts

    Report total nonemployee compensation of $2,000 or more in Box 1. For tax year 2026 also complete, where applicable, Box 1b (cash tips), Box 1c (Treasury tipped occupation code), Box 1d (overtime compensation), Box 3 (excess golden parachute payments), and Box 4 (federal income tax withheld — backup withholding).

    Boxes 5–7 cover state tax withheld, the state/payer's state number, and state income.

  • 5
    Review, validate, and choose add-ons

    Our built-in validation flags missing TINs, bad addresses, and math errors before submission. Preview the recipient copy, then add State Filing, Print & Mail, or E-Delivery if you want us to handle recipient copies for you.

  • 6
    Transmit to the IRS and track status

    We transmit directly to the IRS as an authorized e-file transmitter (TCC #AN00134). Your acceptance status is updated in the dashboard within 24 hours, and Form 1096 is handled for you. Filing data and PDF copies stay available for 4 years.

    Deadline: Form 1099-NEC is due to both the IRS and the recipient by February 1, 2027. Businesses filing 10 or more information returns in aggregate must file electronically.
Start Filing 1099-NEC

What is Form 1099-NEC?

Form 1099-NEC, also known as the "Nonemployee Compensation" form, is used to report payments made by a business to individuals who are not employees. These individuals may include freelancers, independent contractors, or self-employed workers.

When do you need to file Form 1099-NEC?

If you provide $2,000 or more in services to a business, that client is usually required to report your earnings by issuing Form 1099-NEC.

Who needs to file Form 1099-NEC?

  • Businesses and organizations that make payments of $2,000 or more to nonemployees (such as independent contractors) during the tax year need to file Form 1099-NEC.
  • Examples of nonemployee compensation include freelance work, driving for ride-sharing companies (like Uber or Lyft), or other self-employment income.

What are the penalties for not filing Form 1099-NEC?

If you do not file your Form 1099-NEC on time, the IRS may impose penalties per form, scaled by how late you file:

  • Failure to file the correct Form 1099 with the IRS: $60 per form if filed within 30 days late, $130 per form if filed more than 30 days late but by August 1, and $340 per form if filed after August 1 or not filed at all. Intentional disregard raises the penalty to at least $680 per form, with no maximum.
  • Failure to provide the payee with the correct Form 1099 statement: penalized on the same tiered schedule under section 6722, with the same $680-per-form floor for intentional disregard.

What's New for Tax Year 2026

Reporting threshold increased to $2,000: under the One Big Beautiful Bill Act (P.L. 119-21), the reporting threshold for Form 1099-NEC rose from $600 to $2,000 for payments made during the 2026 calendar year. The threshold will be adjusted for inflation starting with tax year 2027.

New boxes for tips and overtime: Form 1099-NEC now includes Box 1b (Cash Tips), Box 1c (Treasury Tipped Occupation Code), and Box 1d (Overtime Compensation), reflecting the new tax treatment of qualified tips and qualified overtime pay.

Excess golden parachute payments are reported in Box 3 (Excess Golden Parachute Payments) on Form 1099-NEC, not on Form 1099-MISC.

Electronic filing: businesses filing 10 or more information returns in aggregate must file electronically (effective for returns required to be filed on or after January 1, 2024).

Key Takeaway

If you are paying a contractor for work they performed, use the 1099-NEC. For most other miscellaneous business payments, use the 1099-MISC. Consult with your accounting professional or review the official IRS instructions for the 1099-NEC to ensure accurate reporting this tax season.

1099-NEC Pricing

$1.99 per 1099-NEC form No signup fee · No subscription · Volume pricing down to $0.45

Volume pricing per form

1 – 150
$1.99per form
151 – 500
$0.99per form
501 – 1000
$0.60per form
1000+
$0.45per form

Optional add-ons

State Filing $0.99 / form

Direct filing for 35+ states. CFSF states are always free.

Print & Mail $1.69 / form

USPS first-class recipient copies from a SOC 2 facility.

E-Delivery $0.19 / form

Encrypted PDF copies emailed to your recipients.

TIN Matching $0.49 / check

Validate name/TIN pairs before filing to avoid penalties.

Included at no extra cost

  • IRS e-filing as an authorized transmitter, plus Form 1096 handling
  • Free recipient PDF copies to download and share
  • Bulk Excel/CSV import and built-in error validation
  • CFSF state filing for participating states
  • Secure storage of your filing data for 4 years

1099, 1098, W-2G, and 5498 forms share this tier table. Volume tiers are calculated across all forms you file in a tax year.

Estimate Your Filing Cost

Frequently Asked Questions: Filing 1099-NEC Online

Common questions about e-filing Form 1099-NEC with Tax Form Hero. Still stuck? Contact our support team or browse the full FAQ page.

Any business, nonprofit, or organization that paid $2,000 or more during the 2026 calendar year to a nonemployee — an independent contractor, freelancer, gig worker, attorney, or other self-employed individual — for services performed in the course of your trade or business. Payments to most corporations are excluded, but attorney fees are reportable regardless of entity type.

February 1, 2027 for both the IRS copy and the recipient copy. Unlike most other 1099 forms, the 1099-NEC has no extended deadline for e-filers — paper and electronic filings are due the same day.

Under the One Big Beautiful Bill Act (P.L. 119-21), the 1099-NEC reporting threshold rose from $600 to $2,000 for payments made during the 2026 calendar year, and it will be indexed for inflation starting with tax year 2027. You can still voluntarily file below the threshold.

Yes, if you file 10 or more information returns in aggregate across all form types. That aggregate rule took effect for returns required to be filed on or after January 1, 2024. Tax Form Hero is an IRS-authorized transmitter (TCC #AN00134), so filing through us satisfies the mandate.

$1.99 per form for your first 150 forms, dropping to $0.99 (151–500), $0.60 (501–1,000), and $0.45 (1,000+). No signup fee and no subscription. Optional add-ons: State Filing ($0.99), Print & Mail ($1.69), E-Delivery ($0.19), and TIN Matching ($0.49).

No. Form 1096 is the paper transmittal summary and is not required when you e-file. Tax Form Hero handles the transmittal for you.

It depends on the state. We support direct filing for 35+ states at $0.99 per form, and filing for states in the IRS Combined Federal/State Filing (CFSF) program is always included at no extra cost. See our State Filing page.

Yes. Download our Excel/CSV template from the dashboard, fill in your payer and recipient data, and import hundreds of 1099-NEC records at once. Validation flags missing TINs, bad addresses, and formatting errors before you submit.

Download free recipient PDF copies and distribute them yourself, or let us handle it. Print & Mail ($1.69/form) sends USPS first-class copies from our SOC 2 and HIPAA compliant facility. E-Delivery ($0.19/form) emails encrypted PDFs — recipients must consent to electronic delivery first.

Yes. Once the IRS accepts your original return you can file a corrected 1099-NEC from the dashboard at the standard per-form rate. Correct errors as soon as you spot them, since penalties scale with how late the accurate form reaches the IRS.

$60 per form if filed within 30 days late, $130 per form if filed after that but by August 1, and $340 per form if filed after August 1 or not at all. Intentional disregard raises the penalty to at least $680 per form with no maximum, and a separate penalty applies for failing to furnish the recipient copy.

Use the 1099-NEC for payments to contractors for services performed. Use the 1099-MISC for other business payments such as rent, prizes, awards, and medical payments. Excess golden parachute payments now go in Box 3 of the 1099-NEC.

Your status is updated in the dashboard within 24 hours of submission. Filing data and PDF copies remain available in your account for 4 years, encrypted at 256 bits in transit and at rest.

Still have a question about your 1099-NEC?

Our support team files these every day and can walk you through it.

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When is the deadline to file Form 1099-NEC?

February 01, 2027

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1099-NEC Pricing

$1.99 per form

Volume pricing as low as $0.45 per form. No signup fee, no subscription.

  • 1 – 150 forms $1.99
  • 151 – 500 forms $0.99
  • 501 – 1000 forms $0.60
  • 1000+ forms $0.45
  • State filing $0.99
  • Print & mail $1.69
  • E-delivery $0.19
  • TIN matching $0.49
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