Changes to 1099 Filings – 1099 NEC

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What is new?

  • Addition of 1099 NEC Form

What is 1099 NEC?

IRS has introduced a 1099 NEC form to report payments of $600 or more for services of nonemployees and attorneys. Previously these payments have been recorded in Box Number 7 of 1099 MISC form.

In the new form – 1099 NEC these payments will be recorded on Box Number 1 and starting form 2020 1099 filings, these payments will not be included in 1099 MISC form. So the 1099 MISC form has been modified accordingly to remove 1099 NEC payments – Box 7.

Changes to the 1099 MISC Form:

  1. Rents (box 1)
  2. Prizes and awards (box 3)
  3. Other income payments (box 3)
  4. Generally, the cash paid from a notional principal contract to an individual, partnership, or estate (box 3)
  5. Any fishing boat proceeds (box 5)
  6. Medical and health care payments (box 6)
  7. Crop insurance proceeds (box 9)
  8. Payments to an attorney (box 10) (see Payments to attorneys, later)
  9. Section 409A deferrals (box 12) or
  10. Nonqualified deferred compensation (box 14)

Download NEW 1099 MISC Form >>>

Download 1099 NEC FORM >>>

1099s Important Links

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