Fillable Form 1099 MISC | 1099-MISC Box 7 | File Form 1099

1. Call: 316-869-0948 Form 1099 NEC Vs 1099 MISC- What’s New for 2021 Form 1099 NEC Vs 1099 MISC- What’s New for 2021: Did you know about the changes in 1099 MISC & 1099 NEC? If “no”, then you need to know about the specific changes made in the tax forms. If you hire a contractor to perform work on a course of business, you must file 1099 Tax Forms. Independent contractor’s payments are reported on 1099 MISC & Form 1099 NEC. Read the complete article about Form 1099 NEC Vs 1099 MISC- What’s New for 2021 Confusing right? The two forms look similar but they use for different purposes. 1099 MISC Tax Form used to report miscellaneous income. Form 1099 NEC used to report non-employee compensation. Know about the changes made on the two tax forms clearly and avoid 1099 rejections.

2. Changes in Form 1099 MISC for 2021 Here are the major changes made on IRS Form 1099 MISC for 2021: Federal 1099 MISC title change For the tax year 2021, the title for Form 1099 MISC has changed. Previously, it was “Miscellaneous Income”. But from 2021, it will be “Miscellaneous Information”. This means 1099 MISC used to report miscellaneous information to the IRS. Printable 1099 MISC box 11 In the prior year’s form, box 11 was empty. But for 2021, Form 1099 MISC box 11 includes any reporting under section 6050R. This includes cash payments made for purchasing fish for resale purposes. Or else, payments are made to purchase fish from an individual who is engaged in the trade of catching fish, etc. Changes in IRS Form 1099 NEC Given below are three specific changes made in the boxes of Federal Form 1099 NEC: Box 1 In 2020, payers need to report payments of fish purchases from an individual involved in the trade of catching fish. But from the tax year 2021, box 1 will not be used to report any items under section 6050R reporting. Box 2 In the previous year, Form 1099 NEC box 2 was reserved. For the tax period 2021, payers can use box 2 to report any sales of $5,000 or more of consumer products for resale on a buy-sell basis. Resize 1099 NEC The height of the tax form 1099 NEC is minimized in 2021 in such a way that it can accommodate 3 forms on a page.

3. Do the changes influence Form 1099 MISC reporting requirements? Yes, the changes made in 1099 MISC influences the reporting requirements of the tax form. This means the taxpayers must follow the 2021 general instructions of the form. You must file the Federal 1099 MISC Tax Form: ● The payments of at least 10 as royalties, tax-exempt interests, broker payments in lieu of dividends are in box 2. At least $600 as rents in box 1, prizes or awards, or other income n box 3, any fishing boat proceeds in box 5. $600 or more for medical and health care expenses in box 6, substitute in lieu of dividends in box 8. Crop insurance proceeds in box 9, gross proceeds in box 10. Use box 11 to report payments made for purchasing fish. Section 409A deferrals in box 12, golden parachute payments in box 13, Non-qualified deferred compensation in box 14. Federal tax withholding in box 4 & state tax withheld in boxes 15-17. ● ● ● ● ● Use 1099 MISC box 7 to report direct sales of $5,000 or more of consumer products for resale on a deposit or commission basis. Contact Us: support@form1099online.com Wichita, KS, 67208 https://form1099online.com/