What the heck is form 1099-NEC???

 What is Form 1099-NEC?  This form will be used to report Nonemployee Compensation ONLY starting in January 2021.  Nonemployee Compensation will no longer be reported on 1099-MISC.

1099-MISC will still be used for:

• At least $10 in royalties (see the instructions for box 2) or broker payments in lieu of dividends or tax-exempt interest (see the instructions for box 8).

• At least $600 in:

  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).

You must also file Form 1099-MISC for each person from whom you have withheld any federal income tax (report in box 4) under the backup withholding rules regardless of the amount of the payment.

If you need help filing your 1099-NEC and 1099-MISC, please feel free to contact me 

at 702-469-9426 or cstevens@numbercruncherllc.tax

 

Candace Stevens, CEO/President of

Number Cruncher LLC

cstevens@numbercruncherllc.tax

www.numbercruncherllc.tax