1099-NEC (New in 2020)

by Jan 9, 2021Bookkeeping, Taxes

As we coast into tax season, it’s essential to understand everything you have to track and file as a photographer. One of these many items is what you pay contractors.

Read these related posts:

—————————————-

But right now, we’re going to go over the new 1099-NEC form born in 2020.

You may be familiar with the old school 1099-MISC (Miscellaneous) form pictured below. You would report the total amount you paid a contractor in box 7 labeled “Nonemployee Compensation.” 

OLD 1099-MISC

NEW 1099-MISC (2020)

You’ll notice in the 2020 1099 Misc form below that box 7 has dramatically changed. 

The Box 7 nonemployee Compensation has been moved to its very own form! 

New! 1099 NEC (2020)

You can see the NEW 1099-NEC (Non-Employee Compensation) form below. This form is specifically for reporting nonemployee compensation. 

This means you may be filing both a 1099-Misc and 1099-NEC if you paid contractors and paid rent or an attorney, those items will still go on the 1099-MISC. 

Due Dates

———————————-

RESOURCES

IRS: 1099 MISC & 1099 NEC Instructions
IRS: Blank 1099 NEC
IRS: Blank 1099 MISC

——————————–

Have another question you’d like me to add to this list?

📷 Click here to join my free Facebook community Financially Focused Photographers
I go live in this community every week answering all your tax, bookkeeping, and tax questions!

Photo by Dose Media on Unsplash

– Tiffany Bastian

Hey Photographer!

Grab the Free Guide and Handle Sales Tax Like a Pro!

Pin It on Pinterest

Share This