2025 IRS Form 1099-NEC

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All states | 22 types
Updated Jan 28, 2025
~ 6 pages
PDF
3K downloads
Form 1099-NEC is a federal tax form between a business and a nonemployee used to report compensation paid for freelance or contract work. It is used by companies to disclose independent contractor earnings and ensure tax compliance.
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2024 IRS Form 1099-NEC

The 1099 NEC 2025 reports payments to independent contractors or freelancers. "NEC" means "Non-Employee Compensation." It helps the IRS keep track of income that isn't regular salary. The 1099 NEC online form also ensures that the taxes are paid correctly.

When To Use a Form 1099-NEC?

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When compensating a freelancer, utilize a fillable 1099 NEC form. This form is necessary when the worker is not an employee and tax withholding isn't done on their payments. A printable 1099-NEC form is necessary if:

  • You've paid $600 or more in services to a non-employee.

  • You made the payments as part of business operations.

Parties Involved

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  • Payer. This is the business or entity that hires the contractor.
  • Payee. This is the contractor providing the service.
  • IRS. The Internal Revenue Service, which requires the form for tax purposes.

Key Terms

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  • Non-Employee Compensation. Compensation for services rendered by a non-employee.
  • Payer. The entity making the payment.
  • Payee. The individual or business receiving payment.
  • State Requirements. Each scannable 1099 NEC may have unique guidelines depending on the state. 

How To Create a Form 1099-NEC?

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You can quickly fill out a 1099 NEC template online using Loio, which offers a PDF tool to make the filling out easy. 

  1. Get the form. A 1099 NEC download is available on Loio.

  2. Collect Details. Details from the payer and payee, including names, addresses, and tax identification numbers.

  3. Fill Out the Form. In the print 1099 NEC enter payment amounts and payer/payee information.

  4. Include Required Signatures. The form must be signed by the payer before submission.

  5. Distribute Copies. Send Copy A to the IRS. Give Copy B to the contractor for their records. Retain Copy C for your business records.

  6. Submit. Submit the 1099-NEC form PDF by January 31 of the following year to avoid penalties.

Filing this form benefits both payers and payees. It keeps your business compliant and helps contractors accurately report their income. The correct filing of the 1099 NEC blank form also avoids potential legal issues. 

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