IRS Form 1099-NEC walkthrough (Nonemployee Compensation)

Subscribe to our KZbin channel: / @teachmepersonalfinanc...
Subscribe to our newsletter: tinyurl.com/3b...
Do you use TurboTax? If not, is the reason because you're not sure which TurboTax software is the right one for you? In that case, head on over to this page to learn more about all the things that TurboTax has to offer: tinyurl.com/3d...
Please feel free to check out our article, where we've written step by step instructions to help you walk through this tax form! www.teachmeper...
If you’re looking for tutorials for other IRS Forms that you can file directly through the IRS website, check out our free fillable forms page: www.teachmeper...
Here are links to articles we've written about other tax forms mentioned in this video:
IRS Schedule C, Profit or Loss from Business
Article: www.teachmeper...
Video: • IRS Schedule C Walkthr...
IRS Schedule F, Profit or Loss from Farming
Article: www.teachmeper...
Video: • IRS Schedule F walkthr...
IRS Schedule SE, Self-Employment Taxes
Article: www.teachmeper...
Video: • Schedule SE walkthroug...
IRS Schedule 1, Additional Income and Adjustments to Income
Article: www.teachmeper...
Video: • IRS Schedule 1 walkthr...
IRS Form 8822, Change of Address
Article: www.teachmeper...
Video: • IRS Form 8822 walkthro...
IRS Form 8822-B, Change of Business Address or Responsible Party
Article: www.teachmeper...
Video: • IRS Form 8822-B walkth...
Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding
Article: www.teachmeper...
Video: • IRS Form SS-8 Walkthro...

[@1775wardog]

Sir, I want to Thank you for your precise explanation of all boxes. No other 1099NEC video explained in detail what exactly boxes 5 , 6 and 7 were for. Amazing Thanks again

[@teachmepersonalfinance2169]

So nice of you. I'm glad that it helped.

[@JayneeBlount]

What if I did not take out any taxes during DoorDash and boxes 4-7 are empty?

[@selenalouis4241]

Im not a business owner but i received a 1099-NEC from the company i worked for, how do i fill out “ schedule c” section? Please help

[@kmikel3669]

Did you find this out yet? I'm now having this issue

[@selenalouis4241]

@@kmikel3669 no not yet

[@selenalouis4241]

@@kmikel3669 not yet

[@JessecahRustand]

i see these sections: W-2 wages paid section 123 gain/loss self employed pension deduction section 179 unadjusted basis of all qualified property immediately after acquisition override calculated qualified business income (or loss) qualified business income allocable to cooperative payments

[@SheilahAragon-g1p]

Just found your video, thank you. I receiving a 1099-NEC for the first time this year, I am in CA. Where does the person paying me (and filling out the form) get the state no. (box 6) is it the same as a tax ID number? I assume the tax ID is also the payer's TIN?

[@teachmepersonalfinance2169]

The Box 6 number is their state-issued tax ID number, which might be different from their employer ID number (EIN).

[@JayneeBlount]

What if I did not take out any taxes while DoorDashing and boxes 4-7 are empty?

[@JayneeBlount]

What if I did not take out any taxes while DoorDashing and boxes 4-7 are empty?

[@bombont3053]

This works if I have an LLC and I only have one employee and he works only 3 hours a day from Monday to Friday

[@blueisamarketing9542]

As a business owner, WHERE do I file this? I was supposed to do something by today, but apparently I can't E-File.... Do I mail it in? I have 1 form for 1 non-employee paid in 2023 for less than 2k

[@brycewce]

Use Track1099 - it's an IRS approved 3rd party and the only way to get these in this late

[@teachmepersonalfinance2169]

First thing, I would make sure that the non-employee has received his or her copy of this form. Second, you do need to mail a copy to the IRS, but there are specific instructions. At this point, you should contact the IRS to make sure the below guidance is correct, but this is what I read from the form instructions: 1. This will give you some time to take care of the rest. From the IRS Instructions: you can get an automatic 30-day extension of time to file by completing IRS Form 8809. The form may be submitted on paper, or through the FIRE System (fire.irs.gov/) either as a fill-in form or an electronic file. 2. The form instructions specifically state that you cannot print and file the form that you may have downloaded from the IRS website. That version is incompatible with the IRS' optical recognition software. Here is the link where you can order the form: www.irs.gov/businesses/online-ordering-for-information-returns-and-employer-returns 3. . IRS Form 1096 is the IRS' transmittal document, which they need to accept your Form 1099-NEC. Here is a link to an article and video we created on this form: IRS Form 1096, Annual Summary and Transmittal of U.S. Information Returns Article: www.teachmepersonalfinance.com/irs-form-1096-instructions/ Video: kzbin.info/www/bejne/d4GQqKapha-Un9E You'll mail the Form 1099-NEC and the accompanying Form 1096 to one of the following locations, based on where you live: Send all information returns filed on paper to the following. If your principal business, office or agency, or legal residence in the case of an individual, is located in: Alabama, Arizona, Arkansas, Delaware, Florida, Georgia, Kentucky, Maine, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Texas, Vermont, Virginia Internal Revenue Service Austin Submission Processing Center P.O. Box 149213 Austin, TX 78714 Alaska, Colorado, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Wisconsin, Wyoming Use the following address: Department of the Treasury IRS Submission Processing Center P.O. Box 219256 Kansas City, MO 64121-9256 California, Connecticut, District of Columbia, Louisiana, Maryland, Pennsylvania, Rhode Island, West Virginia Use the following address: Department of the Treasury IRS Submission Processing Center 1973 North Rulon White Blvd. Ogden, UT 84201

[@JayneeBlount]

What if I did not take out any taxes during DoorDash and boxes 4-7 are empty?

[@teachmepersonalfinance2169]

If you did not have any taxes withheld, then you'll have to report the income and pay any taxes that you might owe. Since this is reported on a Form 1099-NEC, you'll likely have to report this as self-employment income on Schedule C, then calculate your Medicare and Social Security taxes on Schedule SE (see below). IRS Schedule C, Profit or Loss from Business Article: www.teachmepersonalfinance.com/irs-schedule-c-instructions/ Video: kzbin.info/www/bejne/imSuinloacibf8k IRS Schedule SE, Self-Employment Tax Article: www.teachmepersonalfinance.com/schedule-se-instructions/ Video: kzbin.info/www/bejne/iZ61hayemZWFpKs

[@SusanRodriguez-hz8ey]

what if they dont have a ssn or itin?

[@teachmepersonalfinance2169]

Someone who does not provide their SSN or ITIN to the form issuer is subject to backup withholding.

[@TheresaVasquez-k7m]

Regarding box 6 - I work for a California Business that paid a Contractor based out of Illinois for service. Do I need to create a payer's state no? I am utilizing Tax1099 and I am having issues finalizing the 1099-NEC form.

[@teachmepersonalfinance2169]

I'm so sorry for the late reply...I thought my response posted. If you did not already find this out on your own, I would recommend contacting the folks at Tax1099 to see what additional information is required. From there, they should be able to tell you what you need to do, either it's creating a payer's state number, or something else.

[@SavKardash]

I worked at a festival for 2 days and I got one and I’m not sure how to file this bc on the letter it only gave me box 1 … and the payer info

[@teachmepersonalfinance2169]

Unless you are in a partnership, you would likely report it on Schedule C as self-employment income. Below is some more information about Schedule C. IRS Schedule C, Profit or Loss from Business Article: www.teachmepersonalfinance.com/irs-schedule-c-instructions/ Video: kzbin.info/www/bejne/imSuinloacibf8k

[@King_Aa2024]

I work 10 hours a week at my church. I am label as independent contractor. Im not sure how to determine how much taxes for federal, state and fica. I don't know what compensation are they even talking about? as I just do administrative work. my husband usually file joint but now that I started this job 4 month ago? we are at lost. where to the begin. This is like foreign language to me.

[@teachmepersonalfinance2169]

Generally, the information reported to you on Form 1099-NEC is for you to enter into your tax return software. Your tax return preparation shouldn't look any different than it did previously because you received this tax form from your new employer. But if you're at a loss, then you should have a tax preparer do your tax return this year, then go over with you how your Form 1099-NEC was reported, so your husband can do it next year.

[@Crazylittleray]

I work a few hours a week at a honey stand in Hawaii. This is my first time with a 1099-NEC and i'm filing on FreeTaxUSA. Would i input this as Business income (schedule C)? There is no state or federal withheld.

[@teachmepersonalfinance2169]

Based on what you've posted, it seems appropriate that you would enter your Form 1099-NEC as business income on Schedule C. You'll probably also have to complete Schedule SE to calculate self-employment taxes (i.e. Social Security and Medicare): IRS Schedule SE, Self-Employment Tax Article: www.teachmepersonalfinance.com/schedule-se-instructions/ Video: kzbin.info/www/bejne/iZ61hayemZWFpKs

[@raquelyoung5580]

Our landlord asked for a 1099 from our company for rent paid in 2023. Can the recipient fill out their portion? thanks

[@teachmepersonalfinance2169]

If you're an individual taxpayer, you shouldn't have to complete a Form 1099-MISC for your landlord. However, commercial tenants are required to report rent payments over $600 in a given year. Unfortunately, the IRS expects you to complete the entire form, then give a copy to the landlord, a copy to the IRS, and maintain a copy for your records. More information below for IRS Form 1099-MISC: IRS Form 1099-MISC, Miscellaneous Information Article: www.teachmepersonalfinance.com/irs-form-1099-misc-instructions/ Video: kzbin.info/www/bejne/mZLdpql6m9iLoKc

[@angiebee3581]

Could this also be for contract tax preparers?

[@teachmepersonalfinance2169]

I imagine that if you worked for a tax preparation firm on a contractor basis, you might receive an IRS Form 1099-NEC for that work.

[@Matthew-wk1ti]

I live in alabama where there is state tax but i haven't received a copy one or two just copy b from the contract provider. Where would i access said copy?

[@teachmepersonalfinance2169]

You may need to contact the form issuer to receive Copy 2. If you cannot get Copy 2 from them, then you should be able to use your Copy B (make a copy for your records) for your state tax return--it should contain the same information.

[@Matthew-wk1ti]

@@teachmepersonalfinance2169 thanks

[@Matthew-wk1ti]

@@teachmepersonalfinance2169 Also if I received the 1099 nec do I file under a 1040 like normal?

[@teachmepersonalfinance2169]

@@Matthew-wk1ti There are several possibilities, based on the form instructions: If you believe you are an employee and cannot get the payer to correct this form, report the amount shown in box 1 on the line for “Wages, salaries, tips, etc.” of Form 1040, 1040-SR, or 1040-NR. You must also complete IRS Form 8919 and attach it to your return (see below). If you are not an employee but the amount in Box 1 is not self-employment (SE) income (for example, it is income from a sporadic activity or a hobby), report the amount shown in box 1 on the “Other income” line on Schedule 1 of your Form 1040. If the amount in this box is SE income, report it on Schedule C or F (for farming income) on your Form 1040 if a sole proprietor. You would also have to complete Schedule SE (Form 1040). Below are additional resources for the forms and schedules mentioned above: IRS Form 8919, Uncollected Social Security and Medicare Tax on Wages Article: www.teachmepersonalfinance.com/irs-form-8919-instructions/ Video: kzbin.info/www/bejne/bJq6qIylj89qq7c IRS Schedule 1, Additional Income and Adjustments to Income Article: www.teachmepersonalfinance.com/irs-schedule-1-instructions/ Video: kzbin.info/www/bejne/ioawn5idotOceqs IRS Schedule C, Profit or Loss from Business Article: www.teachmepersonalfinance.com/irs-schedule-c-instructions/ Video: kzbin.info/www/bejne/imSuinloacibf8k IRS Schedule F, Profit or Loss from Farming Article: www.teachmepersonalfinance.com/irs-schedule-f-instructions/ Video: kzbin.info/www/bejne/lZTXkIyMjKh1jpY IRS Schedule SE, Self-Employment Tax Article: www.teachmepersonalfinance.com/schedule-se-instructions/ Video: kzbin.info/www/bejne/iZ61hayemZWFpKs

[@Matthew-wk1ti]

@@teachmepersonalfinance2169 thanks again for the information you a great help!

[@aracelycamachogirly]

So nonemployees compensation, is that money I owe ?

[@teachmepersonalfinance2169]

Box 1, Nonemployee compensation, reflects the amount of money they paid you. You would consider this part of your gross income, not necessarily taxes that you owe. You'll calculate your taxes as you complete your tax return.

[@juniormojica9192]

@@teachmepersonalfinance2169So I could get money back from my nonemployee compensation?

[@teachmepersonalfinance2169]

@@juniormojica9192 I'm not sure I understand your question. If you this form, then you must report the Box 1 item (nonemployee compensation), then calculate your tax liability on your tax return. If you overpaid taxes throughout the year (in Box 4 or elsewhere), then you might receive a tax refund. However, if you underpaid, then you would owe additional taxes.