The New IRS 1099 Form?

Did you know the IRS created a new form to report 1099s?

Beginning with the 2020 tax season, all non-employee compensation will need to be reported using form 1099-NEC.

So for those of us who previously used box #7 on form 1099-MISC for reporting the independent contractors, vendors, S-Corps and LLCs who were paid over $600 in a calendar year. Form 1099-NEC is the new form to file.

The 1099-MISC form will still be used to report other miscellaneous income. Listed below are a few examples of that other miscellaneous income is included on the 1099-MISC form:

1. Rents

2. Prizes and awards

3. Generally, the cash paid from a notional principal contract to an individual, partnership, or estate

4. Any fishing boat proceeds

5. Medical and health care payments

6. Crop insurance proceeds

7. Payments to an attorney

So to make sure your business is filing the correct form, please note the following:

1️⃣ Check with your bookkeeper or accountant, to make sure you will be filing the correct form for your business.

2️⃣ If you are an independent contractor, make sure to check with your client or boss, to verify which form you will be receiving.

If you have any questions, contact us today ✨

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