Form 1099-MISC for Non-Employee Compensation changed to Form 1099-NEC
If you usually give your subcontractors a 1099 at the end of the year reporting the amount of money you paid them, you should be aware the tax form has changed for 2020. You will now issue them Form 1099-NEC.
The 1099-NEC is used strictly for reporting independent contractor payments of $600 or more in the course of your business. Form 1099-MISC will still be used to report items such as royalties, rent, and other income.
Form 1099-NEC has a filing deadline of February 1, 2021. Make sure to gather an updated W-9 from all your subcontractors and keep track of payments made to them.
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