1099-Misc Forms

Non-Employee Compensation is no longer reported on the 1099 MISC form.  All information reported in Box 7 in previous years must be reported on the NEW 1099 NEC form.

File a Form 1099-MISC, Miscellaneous Income, for each person in the course of your business to whom you have paid the following during the year:

At least $10 in royalties and at least $600 in rents, prizes and awards, other income, fishing boat proceeds, health care payments, crop insurance proceeds, attorney proceeds, section 409A deferrals, or nonqualified deferred compensation.

Due to the creation of Form 1099-NEC, the IRS has revised Form 1099-MISC and rearranged box numbers for reporting certain income. Changes in the reporting of income and the form’s box numbers are listed below.

1099-MISC Example
  • Payer made direct sales of $5,000 or more (checkbox) in box 7.
  • Crop insurance proceeds are reported in box 9.
  • Gross proceeds to an attorney are reported in box 10. Payments for services to Attorneys are reported on the 1099 NEC form in box 1 as non-employee compensation.
  • Section 409A deferrals are reported in box 12.
  • Nonqualified deferred compensation income is reported in box 14.
  • Boxes 15, 16, and 17 report state taxes withheld, state identification number, and amount of income earned in the state, respectively.

Prior Year Non-Employee Compensation
Corrections (NEC or Misc box 7)

Corrections for prior years will be completed on the 1099 Misc form thru the 1099 Express program using box 11. The information is given a specific code in the program created by the IRS and will be processed on all years prior to 2020. Once the correction box is checked on the 1099 Misc form box 11 will allow data entry. This is only available for corrections to NEC on years 2019 and before.

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