New year, new tax forms. This year the IRS has brought back the 1099-NEC form to report all non-employment compensation. Previously non-employment compensation was reported in box 7 of the 1099-MISC, along with rent, royalties, healthcare disbursement, and other forms of income. Adding to tax payer’s confusion, the 1099-MISC form had two due dates depending on what was being reported. The new 1099-NEC form does not replace the 1099-MISC. You may now file both forms depending on the types of income that you are reporting. In this short video, we provide some clarity on the new form, including:
  • When to use the 1099-NEC.
  • Due dates, along with potential penalties.
  • Revisions to the 1099-MISC form.
  • Which payments could fall under either form.
  • And, more.
Let us navigate the changes in tax law together and how it impacts your business so that you can focus on what’s important, running your business. We are here to help!