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WHAT IS NEW IN 2020?
Form 1099-NEC
Beginning in 2021, all payments made for non-employee
compensation (NEC) in 2020 and subsequent years will be reported
on a new, separate Form 1099. This streamlined form will report
only NEC payments and backup withholding taxes. The amounts
reported on this form would include all payments to independent
contractors and professionals for services rendered.
Form 1099-MISC
The Form 1099-MISC will no longer include amounts paid to
independent contractors. This form will be limited to reporting
rents, royalties, crop insurance proceeds, and other miscellaneous
income not subject to self-employment taxes.
