Gehman Accounting Blog

Tips and News for 1099s

Laurie Hoover - Dec 3, 2020 9:43:51 AM

January flurries are coming—and not just the white, fluffy kind that descend from winter skies. For business owners, the new year also brings a whirlwind of paperwork as they prepare for 1099 filing. Get ready for 1099s with these tips and changes.

New Form 1099-NEC

The Form 1099-MISC has been divided into two forms for 2020 filing. A new form, called the 1099-NEC, must be used to report nonemployee compensation (NEC) previously entered in box 7 on the 1099-MISC. The 1099-MISC will continue to be used for rents and miscellaneous payments not categorized as nonemployee compensation.

Guidance Guidepost Image
What to Report on 1099-NEC (See for complete list)
  • Payments for services performed by someone who is not your employee (box 1)
  • Payments to an attorney for legal fees or services (box 1)
  • Benefits and commissions paid to nonemployees (box 1)
What to Report on 1099-MISC (See for complete list)
  • Rents (box 1)
  • Other income payments (box 3)
  • Medical and health care payments (box 6)

Due Dates

  • 1099-NEC is due to the IRS by February 1, 2021, for both paper and electronic filing.
  • 1099-MISC is due to the IRS by March 1, 2021, if filing on paper, or March 31, 2021, if filing electronically.
  • NEC and MISC forms are due to recipients on or before January 31, 2021.
Get Vendor Information Now

Want to decrease January stress? Request 1099 information from your vendors now. If you do not have a vendor’s current name, address, and tax identification number on file, you may send a Form W-9. (The W-9 can be accessed and printed online, or you can request a copy from your accountant.) A completed W-9 will give you all the information you need to properly format and file a 1099.

We've Got You Covered

If you work with Gehman Accounting to file 1099s, we will take care of choosing the correct 1099 form for your recipients.

Learn More

Topics: Tax- Updates- QuickBooks- Payroll- Guidance

Laurie Hoover

Laurie Hoover

Laurie Hoover currently leads the secretary team at Gehman Accounting, and she writes and edits for the company as needed. With a BA in English and a minor in journalism, Laurie desires excellence and accuracy in all things.

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