2024 Forms 1099-NEC are due to contractors and the IRS by Jan. 31, 2025.
If you paid an independent contractor $600 or more, report this amount in Box 1 of Form 1099-NEC. If you withheld any backup withholding, enter this amount in Box 4 of the form. Remember to file Form 945 with the IRS by January 31, 2025, to report the withholding. With the contractor’s consent, you can send the 1099-NEC electronically. Our W2 Mate software supports both paper and electronic delivery. For a sample consent form, visit this link.
When providing copies of tax forms to payees, you may truncate (mask) their Taxpayer Identification Numbers (TINs) by removing the first five digits. This can be done on both paper and electronic copies. However, when filing forms with the IRS and state tax authorities, you must include the full TIN for each payee, as well as your full Employer Identification Number (EIN). Truncated TINs, which are shortened versions of the full TIN, look like this: XXX-XX-1234 for Social Security Numbers (SSNs), and X X-X X X1234 for EINs. Our W2 / 1099 software supports masking the recipient’s SSN / EIN on 1099 copies.
Starting in 2024, businesses must e-file information returns if they are filing 10 or more forms in total, including W-2s, 1099s, and 1095s. The IRS offers two e-filing platforms: the established IRS FIRE (Filing Information Returns Electronically) system and the newer IRIS (Information Returns Intake System).
Both FIRE and IRIS support the Combined Federal/State Filing program, which allows for simultaneous federal and state filing for participating states. Please refer to the table below for the list of states that participate:
| State | Code | State | Code | State | Code |
| Alabama | 01 | Indiana | 18 | Nebraska | 31 |
| Arizona | 04 | Kansas | 20 | New Jersey | 34 |
| Arkansas | 05 | Louisiana | 22 | New Mexico | 35 |
| California | 06 | Maine | 23 | North Carolina | 37 |
| Colorado | 07 | Maryland | 24 | North Dakota | 38 |
| Connecticut | 08 | Massachusetts | 25 | Ohio | 39 |
| Delaware | 10 | Michigan | 26 | Oklahoma | 40 |
| District of Columbia | 11 | Minnesota | 27 | Pennsylvania | 42 |
| Georgia | 13 | Mississippi | 28 | Rhode Island | 44 |
| Hawaii | 15 | Missouri | 29 | South Carolina | 45 |
| Idaho | 16 | Montana | 30 | Wisconsin | 55 |
Before e-filing, users must complete two important steps:
- Authenticate their identity through ID.me or Login.gov
- Obtain a Transmitter Control Code (TCC), which serves as an e-filing credential
It’s important to note that separate TCCs are required for FIRE and IRIS. For information on obtaining a FIRE TCC, please refer to this tutorial on our website. IRIS users should refer to Publication 5717 for guidance on acquiring their TCC.
TIN matching helps you verify a contractor’s name and Taxpayer Identification Number (TIN) before completing your 1099-NECs, reducing errors and potential delays. This free service allows you to verify up to 25 name/TIN combinations on screen. Verify your contractors’ information easily: Learn more and get started at https://www.irs.gov/e-services.
1099 filers and tax professionals can you utilize our W2 Mate (desktop-based and in-house W2 / 1099 software) to file 2024 1099 forms on paper and electronically using IRS FIRE or IRIS CSV upload. The software also supports TIN matching and electronic recipient 1099 statements. You can download a free demo by visiting:
https://www.realtaxtools.com/download-w2-mate-w2-1099-print-efile-software.html