1099 NEC

The PATH Act, P.L. 114-113, Div. Q, sec. 201, accelerated the due date for filing Form 1099 that includes nonemployee compensation (NEC) from February 28 to January 31 and eliminated the automatic 30-day extension for forms that include NEC. Beginning with tax year 2020, use Form 1099-NEC to report nonemployee compensation.

See part C in the 2020 General Instructions for Certain Information Returns, and Form 8809, for extensions of time to file. See part M in the 2020 General Instructions for Certain Information Returns for extensions of time to furnish recipient statements.

Redesigned Form 1099-MISC.

Due to the creation of Form 1099-NEC, we have revised Form 1099-MISC and rearranged box numbers for reporting certain income.

Changes in the reporting of income and the form’s box numbers are listed below.

Payer made direct sales of $5,000 or more (checkbox) in box 7.

Crop insurance proceeds are reported in box 9.

Gross proceeds to an attorney are reported in box 10.

Section 409A deferrals are reported in box 12.

Nonqualified deferred compensation income is reported in box 14.

Boxes 15, 16, and 17 report state taxes withheld, state identification number, and amount of income earned in the state, respectively.

Source : irs.gov