1099-NEC Forms

Brand new for 2020 is the 1099 NEC form. In the IRS's infinite wisdom, they have chosen to split out the Non-Employee Compensation reporting to its own form with a due date of January 31st. This form replaces the box 7 reporting on the 1099 Misc form. All other forms of income on the 1099 Misc form are due on March 31st.

All reporting requirements remain the same. There is no difference in how the form is completed however there are some differences in how Attorneys fees are handled.  There is a distinction in Payments (Non Employee Compensation) vs Proceeds paid to an Attorney and they are reported on either the NEC or the MISC.  Please go here for more information.

What it Looks Like

1099-NEC Example

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.

We also offer Print & Mail services to complete the process from beginning to end for you. Please give us a call for an individual quote at: (361) 884-1500

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