Do You Know Which IRS Form to File if You Paid Independent Contractors in 2020? (The Answer May Surprise You!)
If you’re a business that relied on independent contractors (ICs) for various services in 2020, you may assume you should file Form 1099-MISC like always. But wait! There’s a new tax form on the block – and you’re going to need to acquaint yourself with it to meet your tax reporting responsibilities.
Beginning with the 2020 tax year, Form 1099-NEC will replace Form 1099-MISC box 7 for reporting non-employee compensation, which includes payments to ICs.
Be Clear on When to Use Form 1099-NEC
To put it simply, the new 1099-NEC performs the exact same function as 1099-MISC box
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