IRS Announces Changes to Form 1099-NEC and Form 1099-MISC
If you file 1099 Forms for your business, you’ll need to know about recent changes to both the Forms 1099- NEC and Forms 1099-MISC
What’s New for Form 1099-NEC
The most important change that you need to be aware of is that the non-employee compensation (formerly on box 7 of the Form 1099-MISC) has now moved to Form 1099-NEC.
The PATH Act accelerated the due date for filing Form 1099 from February 28 to January 31. It also eliminated the 30-day extension for forms that include the NEC.
The Redesigned Form 1099-MISC
Other changes with Form 1099 include:
- Crop insurance proceeds are reported in box 9.
- Gross proceeds to an attorney are reported in box 10.
- Section 409A deferrals are reported in box 12.
- Nonqualified deferred compensation income is reported in box 14.
- Boxes 15, 16, and 17 report state taxes withheld, state identification number, and amount of income earned in the state, respectively.
Changes to Form 1099-MISC
Remember, you’ll need to file a 1099-MISC for the following:
- A person to whom you’ve paid at least $10 in royalties
- A person to whom you’ve paid at least $600 in rent, prizes or awards, other income payments, medical and healthcare payments and other payments (you can find a complete list at https://www.irs.gov/instructions/i1099msc#idm140364700591760
If you have questions about Forms 1099-NEC or Forms 1099-MISC, please contact your Mize payroll or tax professional.
