What is Form 1099-NEC?
335 views |
Last modified 10/12/2023 5:36:29 AM EST |
Added by TaxBandits Team
Form 1099-NEC is used to report payments (payments of at least $600 or more) made to nonemployees during the tax year. The payments, including,
- Fees
- Rent
- Royalties
- Commissions
- Prizes
- Awards
- Other forms of compensation for service related to your trade or business.
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.
The main purpose of introducing Form 1099-NEC is 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 current tax year 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.