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What is the 1099 MISC Form?

A 1099 MISC Form is an (IRS) Internal Revenue Service document used for reporting various types of diverse compensations such as rent, awards, prizes, and healthcare payment payments to advocates.

Before the tax year 2020, the 1099 MISC Form was used for reporting nonemployee allowance for independent contractors, freelancers, sole proprietors and even self-employed persons. When 2020 started, the nonemployee pay started to be reported on Nonemployee Compensation.

What is the 1099-MISC Form used for?

The 1099-MISC Form reports various compensation, including rent, awards, prizes, and healthcare payment payments to advocates. If a business has paid you more than $600 on legal borders, it must be filed form 1099-MISC because these payments are not subject to self-employment taxes.

What is the Difference between 1099-MISC and 1099-NEC?

Before the tax year 2020, you used to report miscellaneous income, including nonemployee compensation, in the 1099-MISC Form. But at the dawn of 2020, the IRS decided to bring 1099-NEC back into action to report the non-employment compensation compared to the other payments.

These other payments are now reported to 1099-MISC forms. Now, with a clear concept of these two forms, let’s discuss the due dates for each of them. Wouldn’t it be so much easier if the dates would be the same, but the sad reality is that they aren’t the same!

March 1 is the due date for filing the IRS form 1099-MISC, if you file it by mail, and March 31 if you file it electronically. The due date for filing a form 1099-NEC is January 31 for the following tax year.

Also, See: 1099 NEC Form

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