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Changes to 1099-MISC Form Online For 2020-2021

2020 is coming to an end in less than 30 days. Businesses around the country are gearing up for the tax season starting with the new year in 2021. In light of the Covid-19 pandemic (which continues to restrain a lot of businesses), many hope for 2021 to be a much more positive and successful year, both personally and financially. <br><br><br>

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Changes to 1099-MISC Form Online For 2020-2021

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  1. Changes to 1099-MISC Form Online For 2020-2021 Some heavy changes have been made to the Form 1099 MISC Online by the IRS for 2020-2021. 2020 is coming to an end in less than 30 days. Businesses around the country are gearing up for the tax season starting with the new year in 2021. In light of the Covid- 19 pandemic (which continues to restrain a lot of businesses), many hope for 2021 to be a much more positive and successful year, both personally and financially. Planning on having a stress-free new year and 2021? Then we recommend that you check out the guidelines and updates that the IRS has enforced on 1099 MISC Form Online and be prepared for a calmer and positive (hopefully) 2021. So, let’s have a quick rundown on all the major and minor changes enforced by the IRS Form 1099-MISC Online and related forms for the year 2020-2021.

  2. Changes to ‘Non-Employee Compensation’ Payments Previously, all ‘Non-Employee Compensation’ payments were reported to recipients and the IRS in form 1099-MISC, Box 7. What’s New In 2020 Tax Season? ‘Non-Employee Compensation’ will now include a new form. The 1099-NEC form has been created to separate the 1099-MISC, Box 7 forms. What You Need to Do All you have to do is use the new form 1099-NEC for ‘Non-Employee Compensation’ and the revised 1099-MISC form when filing other types of “Miscellaneous Income” to the IRS. Changes to 1099-MISC, Box 7 Previously, all the ‘Non-Employee Compensation’ amounts ($600 or greater) were supposed to be reported on Form 1099-MISC Online , Box7, and other “Miscellaneous Income” reported using other boxes on Form 1099-MISC.

  3. What’s New? Now, all the ‘Non-Employee Compensation’ amounts ($600 or greater) that you previously entered in 1099-MISC, Box7 should be reported on 1099-NEC, Box 1. What You Need to Do All you need to do is ensure that you use Box 1 in the 1099-NEC form to report all the amounts ($600 or greater). As a responsible business, ensure that these forms are mailed to the recipients and the IRS on or before the 31st of January 2021. Luckily, 31st January 2021 is a Sunday, so you can mail it on or by 1st of February 2021 (Monday). Other Amounts on 1099-MISC Online Form that Need to Be Reported in New Boxes All the other amounts (at least $600) should be reported in a new box as specified below.

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