What Copies of 1099-NEC Go to the Recipient? Copy B and Copy 2

As the recipient of Form 1099-NEC, you get two of the five copies: Copy B for your federal income tax return and Copy 2 for your state income tax return. The business that paid you must deliver both by January 31 of the year after the payments were made, whether on paper or electronically.¹ If you worked as an independent contractor and earned $600 or more from a single client during the year, expect both copies early in the new year.

What Copy B and Copy 2 Are For

The two copies you receive look nearly identical. The only real difference is the label at the top telling you which filing each one supports.

Copy B is your primary tax document. You use it to report the income on your federal return. Copy 2 is the state version. You attach or reference it when filing your state income tax return, if your state requires it. If you live in a state with no income tax, Copy 2 has no practical use, but payers typically send it anyway as part of the standard form set.

Where the Other Three Copies Go

The 1099-NEC comes in five copies total. Knowing where the other three end up helps you see who already has your information before you file.

Copy A goes to the IRS. The payer submits it directly, typically alongside Form 1096, which serves as a cover sheet summarizing the information returns being transmitted.
Copy C stays with the payer. The business keeps it as proof of what it paid you and reported to the IRS.
Copy 1 goes to your state tax department, if your state requires reporting of nonemployee compensation.

The payer must file Copy A with the IRS by the same January 31 date your copies are due, so there is no gap between what you receive and what the IRS already knows about your income.

How Your Copies Reach You

You can receive your copies either by physical mail or electronically. Each method has specific IRS requirements.

Physical Mail

The payer sends your copies to the last address you gave them. A form mailed to that address still counts as “furnished” even if you have moved and never see it. If you changed addresses during the year, contact every client who paid you $600 or more and update your information before January.²

Electronic Delivery

A payer cannot just email you a PDF. Before sending your 1099-NEC electronically, the payer must get clear written consent from you. The consent disclosure has to tell you how to withdraw consent later, what hardware and software you need to view the form, how long the form will be available online, and how to request a paper copy if you change your mind.² If you never gave that consent, the payer owes you a paper copy.

If you did consent, download and save the PDF somewhere you control. Payers are not required to keep electronic statements available indefinitely, and the consent disclosure should state the date the form comes down.

Using Copy B to File Your Federal Return

The dollar amount in Box 1 of Copy B is your nonemployee compensation from that payer. You report this income on Schedule C (Profit or Loss From Business), which flows into your Form 1040.³ This is true even if the work was a side gig rather than a full-time business.

Here is where many first-time contractors get caught off guard: unlike W-2 wages, no taxes were withheld. You owe both income tax and self-employment tax on this income. Self-employment tax covers Social Security and Medicare at a combined rate of 15.3% on net earnings up to the Social Security wage base of $184,500 for 2026, with the 2.9% Medicare portion continuing on all earnings above that.⁴ You calculate this on Schedule SE, which also files with your 1040.

Because nothing is withheld, the IRS expects you to pay as you earn through quarterly estimated tax payments using Form 1040-ES. You generally need to make these payments if you expect to owe $1,000 or more when you file.⁵ Missing the quarterly deadlines triggers a separate underpayment penalty, even if you pay everything you owe on April 15.

One exception to the no-withholding rule: if the payer applied backup withholding at 24% because you did not provide a valid taxpayer identification number, that amount appears in Box 4 of your 1099-NEC.⁶ You claim it as a credit on your return, reducing what you owe.

Using Copy 2 for Your State Return

Whether Copy 2 matters depends on where you live. States without an income tax have no use for it. States that do have an income tax generally follow the federal $600 reporting threshold, though a few set their own thresholds or require reporting only when state withholding was applied. Check your state’s rules, then attach or reference Copy 2 the way your state return instructs.

If Your Copies Don’t Arrive or the Amount Is Wrong

If January 31 passes and your copies have not shown up, contact the payer directly. That is the fastest path. If the payer does not respond or cannot be reached by the end of February, call the IRS at 800-829-1040. Have the payer’s name, address, and phone number ready, along with your own Social Security number. The IRS will reach out to the payer on your behalf.⁷

Do not wait for the form to file your return. You are required to report the income whether or not a 1099-NEC ever reaches you. If the form has not arrived by your filing deadline, use your own records — invoices, bank deposits, payment app history — to report the correct amount on Schedule C. If the form eventually shows up and the amount differs from what you reported, file an amended return using Form 1040-X.⁷

If a copy did arrive but Box 1 is wrong, contact the payer first and ask for a corrected form. If the payer agrees, they issue a new 1099-NEC with a checkmark in the “CORRECTED” box at the top. If the payer will not cooperate and the amount is clearly incorrect, report the accurate figure on your return and keep documentation showing what you actually received.

How Long to Keep Copy B and Copy 2

Hold onto both copies for at least three years from the date you filed the return reporting that income, or three years from the return’s due date, whichever is later.⁸ That window matches the IRS’s standard audit period. If you underreported income by more than 25%, the IRS has six years to come back, so keeping records longer is prudent if there is any ambiguity about your total earnings for a given year.⁹

1
Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC (04/2025)
2
Internal Revenue Service. General Instructions for Certain Information Returns (2025) – Section: Statements to Recipients
3
Internal Revenue Service. About Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship)
4
Social Security Administration. Contribution and Benefit Base
5
Internal Revenue Service. Estimated Taxes
6
Internal Revenue Service. Publication 15 (2026), (Circular E), Employer’s Tax Guide
7
Internal Revenue Service. What to Do When a W-2 or Form 1099 Is Missing or Incorrect
8
Internal Revenue Service. How Long Should I Keep Records?
9
Internal Revenue Service. Publication 583 (12/2024), Starting a Business and Keeping Records