As an independent contractor, a freelancer or as a self employed person, in the past you have received a 1099-MISC from businesses to which you provided more than $600 in services. Starting with the 2020 tax filing season, you will be receiving Form 1099-NEC.
The new 1099-NEC will capture any payments to non-employee service providers, such as independent contractors, freelancers, vendors, consultants and other self-employed individuals (commonly referred to as 1099 workers).
According to the IRS, a combination of these four conditions distinguishes a reportable payment:
- It is made to someone who is not your employee.
- It is made for services in the course of your trade or business.
- It was made to an individual, partnership, estate or in some cases a corporation.
- Payments were $600 or more for the calendar year.
If you need our office to prepare 2020 1099-NECs, please provide the required information no later than January 18th, 2021.