Form 1099 Changes in 2020
The 1099-MISC form has been used in the past to report certain payments, including nonemployee compensation, to the IRS. Beginning with tax year 2020, the Form 1099-MISC has been redesigned due to the creation of Form 1099-NEC. Employers will no longer report nonemployee compensation, such as payments to independent contractors, on Form 1099-MISC, they will instead report on Form 1099-NEC.
- You made the payment to someone who is not your employee.
- You made the payment for services rendered in the course of your trade or business (including government agencies and nonprofit organizations).
- You made the payment to an individual, a partnership, an estate, or, in some cases, a corporation.
- You made payments to the payee of at least $600 during the year.
Redesigned Form 1099-MISC
- At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
- At least $600 in the following:
- Prizes and awards.
- Other income payments.
- Generally, cash from a notional principal contract to an individual, a partnership or an estate.
- Any fishing boat proceeds.
- Medical and health care payments.
- Crop insurance proceeds.
- Payments to an attorney.
- Section 409A deferrals.
- Nonqualified deferred compensation.