1099 Forms

1099s must be issued to people you have paid over $600.00 of proceeds to in the calendar year. 

In past years the 1099-MISC was used for all forms of payments, however new in 2020 the IRS added the NEC form and re-arranged the boxes on the forms. This is how filings are now broken down:

File Form 1099-NEC to report payments of $600 or more to non-employees (contractors).

File Form 1099-MISC for each person to whom you have paid at least $600 or more in:

  • Rents.
  • Prizes and awards.
  • Other income payments.
  • Medical and health care payments.
  • Crop insurance proceeds.
  • Generally, the cash paid from a notional principal contract to an individual, partnership, or estate.
  • Payments to an attorney.
  • Substitutes in lieu of dividends or interest
  • Any fishing boat proceeds.
  • Deferral of payments
  • Direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.

Most up to date software has accounted for this change, such as Quickbooks Online and Quickbooks Desktop 2020. However, be sure to speak with whomever prepares your 1099s to confirm if you or they have the right software and documents ready.  All forms must be issued to recipients by January 31st and filed to the IRS by March 1st. 

If you are confused or uncertain about any of these guidelines visit:

https://www.irs.gov/pub/irs-pdf/i1099msc.pdf