Understanding 1099-NEC Requirements: Your Guide from Sai CPA Services
As tax season approaches, understanding your 1099-NEC obligations is crucial for both businesses and independent contractors. At Sai CPA Services , we're committed to helping you navigate these requirements effectively. Key Thresholds The most important number to remember is $600 . If you've paid a contractor or received non-employee compensation totaling $600 or more during the tax year, a 1099-NEC must be filed. This threshold applies to each individual contractor, not the cumulative amount paid to all contractors. Critical Deadlines January 31 : This is the deadline for both providing Copy B to contractors and filing Copy A with the IRS. Unlike some other tax forms, there's no automatic 30-day extension available. February 15 : If you're reporting payments with backup withholding , this deadline applies for filing with your Form 945 . Important Forms to Know The 1099-NEC includes multiple copies: Copy A : Submitted to the IRS ...