What is the difference between 1099-MISC and 1099-NEC?
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Last modified 7/16/2020 9:17:48 AM EST |
Added by TaxBandits Team
Before the mid of 2019, Form 1099-MISC had the Box 7, which is used to report Nonemployee Compensation. Now, Box 7 is excluded from that and treated as a new form called 1099-NEC. It is because of the confusion on the filing dates. Let’s see how it is differentiated.
Form 1099-NEC is drafted in such a way to report the nonemployee compensation alone, whereas Form 1099-MISC can be used to report the other miscellaneous expenses.
Note: The IRS has released the revised version of Form 1099-MISC.