Quick Takeaway

If you earn freelance income and you paid another freelancer $600 or over the course of the year to help you with your business, you probably need to send them a 1099-NEC.

Online services like https://www.track1099.com/ make these forms super easy to fill out, efile, and send to the person you paid. It's easy, only slightly annoying, and you're taking care of yourself and the person you paid.

Deadline

  • These are due January 31, so be sure to take care of them in a timely manner to avoid any potential penalties!

Things You Need to Fill Out a 1099-NEC For Someone You Paid

The easiest thing to do is as the people you paid to send you a W-9, and this form will include all the information you need from them.

  • Info for the person you paid (the "recipient" or "payee"):
    • Name (or business name)
    • Address
    • SSN (or EIN if they have one)
  • Info for you (the "payer"):
    • Name (or business name)
    • Address
    • SSN (or EIN)

Additional Notes / Explanation

Basically, you’re sending a record to that person, and to the IRS, of how much you paid them. Unless you have a corporation or you’ve got employees, you’ve got to send out a 1099-NEC to each person you paid $600 or more.

When you’re putting info into our website about how much you paid people, you can include the folks you sent 1099-NECs to under “People You Paid” on the "Freelance" tab. Be sure to total everyone you sent a 1099 to, as well as anyone you paid under $600 (you just don't have to issue these people a 1099).

1099-MISC Forms are still around, but now they're just used to report specific kinds of miscellaneous income such as:

  • rent payments
  • prizes and awards
  • medical and health care payments
  • payments to an attorney

Need help? Or don't want to do it yourself? Not to worry—we can take care of these forms for you for $25 each. Email us at info@brasstaxes.com to get started on that.