New Changes to 1099-MISC; Do I Need to File Both 1099-MISC and 1099-NEC?

What is New?

In filing the year 2020, IRS has created a new form 1099-NEC, it is for businesses who made payment to individuals, non-employees, independent contractors, freelancers, and vendors who are LLCs that you paid $600 or more in 2020.Before 2020, it was reported on Box 7 of 1099-MISC, which is the total amount of non-employee compensation. This information is now reported on the 1099-NEC.If you filed 1099-MISC with only Box 7 in the past, you should most likely choose Box 1 – Non-employee Compensation on the 1099-NEC. It is the most common situation and the only box most businesses will need to select for payment types. If you have other payment types, you’ll need to file both 1099-MISC and 1099-NEC forms.

1099-NEC FORM

Filing Dates and Methods

Note:

The tax filing due dates are different for each of these forms.

1. Form 1099-NEC due date is February 1, 2021, by paper or electronically.
2. Form 1099-MISC due date is March 1, 2021, by paper, or March 31, 2021, if you file electronically

QuickBooks Online Users:

You can file 1099-NEC or/and 1099-MISC on QuickBooks online.

If you have any questions about setting up QB for e-filing 1099 forms or other concerns, please consult us by setting up an appointment. Here is a link to our calendar: https://calendly.com/dhuang-2/new-client-phone-call.