Important note:
Meet the all new 1099-NEC form! It was just launched in 2020.
For many of us, this will replace using the 1099-MISC form.
1099 forms are used to report income, the acronym at the end stands for what type of income. For example, 1099-R for retirement income. 1099-INT for interest. 1099-MISC was for miscellaneous income, which included many things, like royalties, fishing proceeds, “non-employee compensation”, and more.
In 2020, the IRS decided that “Non-employee compensation” needed its own special form, so now we have the 1099-NEC. This is used for paying anyone for services, over $600 in a year that is an independent contractor - whether they have a business license or not. You might receive these. You also might need to fill them out for others that you’ve hired. To learn more, read below.
It behaves very much like the 1099-MISC.
The following blog posts were written for 1099-MISC. I will update them as soon as I can. For now, please use them to get the basic idea for understanding 1099-NEC.
What are 1099s? Do they apply to me?
How to Order 1099-MISC Forms (free!)
About W-9s (coming soon)