What is Form 1099-NEC?
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Last modified 12/24/2020 5:02:13 AM EST |
Added by TaxBandits Team
The Form 1099-NEC has been reintroduced for the tax year 2020 to report nonemployee compensation made to independent contractors, including royalties, rent, and more.
Until 2019, payers used Form 1099-MISC to report miscellaneous payments made to contractors, including non employee compensations in Box 7. At the beginning of 2020, the IRS announced that the Nonemployee Compensation would be reported in a new separate form, i.e., 1099-NEC.
It was introduced to eliminate the confusion of having two deadlines for 1099-MISC.
If you want to file nonemployee compensation for prior years, use 1099-MISC to report independent contractors' payments.
With TaxBandits, payers can easily file 1099-NEC for the tax year 2020 in a few minutes. He/she can also furnish copies of it to their contractors via email or postal mail with just a click of a button.
Payers can now use TaxBandits new scheduling feature to file Form 1099-NEC and 1099-MISC on a future date. It helps you to revise the form freely without penalty. Make sure the scheduling date is on or before the IRS deadline.