Yes, you must report non-employee compensation if you paid a freelance writer $600 or more in a specific tax year. Use Form 1099-NEC to report the payment figure made to a freelance writer. It can feel tricky determining how to manage payments made, but tax software can offer you an accurate solution. Send copies of the completed form to the Internal Revenue Service and the relevant independent contractor by Jan. 31 of the following year.
Take the following steps to report these payments:
- Collect contractor information. Provide your freelance writer with Form W-9 and make sure all of their personal information remains up-to-date.
- Complete Copy A and Copy B of Form 1099-NEC. File Copy A of the form with the IRS. Send Copy B to your independent contractor. Mail or electronically file Copy A and mail or email Copy B. Request permission from a contractor before you email a form.
- Submit Form 1096. Include a cover form if you print and mail Form 1099-NEC to the IRS.
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