Beginning with tax year 2020, use Form 1099-NEC to report nonemployee compensation. (Previously Box 7 on 1099-MISC)

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eFileMyForms Tax Year 2020 IRS/SSA Updates

Tax Year 2020 IRS/SSA Updates

  • 1098
    • Mortgage Insurance Premiums: Mortgage Insurance Premiums (MIP) remain deductible for Tax Year 2020 (report in Box 5).

  • 1099-MISC
    • Moved to New Form, 1099-NEC:
      • Box 7, Nonemployee compensation, from the Tax Year 2019 1099-MISC has been removed and placed on a new tax form called the 1099-NEC.
    • Deadlines:
      • Printing & Mailing - January 31, 2021
      • Paper Filing - March 1, 2021
      • Electronic Filing - March 31, 2021
    • Form Changes:
      • 2019 Box 7 - Nonemployee compensation is now Checkbox 7 - Payer made direct sales of $5000 or more of...
      • 2019 Box 9 - Payer made direct sales of $5000 or more of... is now Box 9 - Crop insurance proceeds.
      • 2019 Box 10 - Patron's AMT adjustment is now Box 10 - Gross proceeds paid to an attorney.
      • 2019 Box 14 - Gross proceeds paid to an attorney is now Box 14 - Nonqualified deferred compensation.
      • 2019 Box 15a - Section 409A deferrals is now renumbered to Box 12 - Section 409A deferrals
      • 2019 Boxes 16, 17, 18 - State tax withheld, State/Payer's State no., State income are now renumbered to 15, 16, 17 respectively.

  • 1099-NEC
    • New Form:
      • Form Title - Nonemployee Compensation.
      • What to Report - Nonemployee Compensation payments of $600 or more (previously was on the 1099-MISC).
    • Deadlines:
      • Printing & Mailing - January 31, 2021
      • Paper Filing - February 1, 2021
      • Electronic Filing - February 1, 2021

  • 1099-PATR
    • 2019 "Box 5 - Redemption of nonqualified notices and retain allocations" is now "Box 5 - Redeemed nonqualified notices".
    • 2019 "Box 6 - Domestic production activities deduction" is now "Box 6 - Section 199A(g) deduction".
    • 2019 "Box 7 - Qualified payments" is now "Box 7 - Qualified payments (Section 199A(b)(7))".
    • 2019 "Box 8 - Investment credit" is now "Box 8 - Section 199A(a) qual. items".
    • 2019 "Box 9 - Work opportunity credit" is now "Box 9 - Section 199A(a) SSTB items".
    • 2019 "Box 10 - Patron's AMT adjustment" is now "Box 10 - Investment credit".
    • 2019 "Box 11 - Other credits and deductions" is now "Box 11 - Work opportunity credit".
    • Renumbered 2019 Box 11 - Other credits and deductions" is now "Box 12 - Other credits and deductions".
    • Added "Box 13 - Specified Coop".

  • 1099-R
    • 2019 "FATCA Checkbox" is now "Box 12 - FATCA Checkbox".
    • 2019 "Date of Payment" is now "Box 13 - Date of Payment".
    • All State & Local boxes have been re-numbered up by two (2).

  • W-2
    • Employers may now truncate the employee’s SSN on employee copies of Forms W-2. Do not truncate the employee’s SSN on Copy A.
    • The TY2020 Social Security Wage Base is $137,700.
    • The TY2020 Social security tax withheld amount should not exceed $8,537.40 ($137,700 × 6.2%).
    • The TY2020 Social Security and Medicare coverage threshold for Household wages is now $2,200 ($100 increase from 2019).

  • 1042-S
    • Box 3b/4b - tax rates - Revised backup withholding rate under section 3406 (24%) has been added to Valid Tax Rate Table.
    • Boxes 12b, 12c, 13f, 13g, 15b, 15c, 16d, and 16e (Chapter 3 Status Code).
      • Deleted: Chapter 3 Status Codes: 01 (U.S. Withholding Agent - FI), 02 (U.S. Withholding Agent - Other), 34 (U.S. Withholding Agent - Foreign branch of FI)
      • Added: Chapter 3 Status Codes:36 (Foreign Government - Integral Part), 37 (Foreign Government - Controlled Entity).
      • Updated: Chapter 3 Status Code:19 is updated from “Government or International Organization” to “International Organization.”
    • Box 12f - country code - If the withholding agent is a U.S. person or a foreign branch of a U.S. person, filers are now permitted to enter “US” in box 12f even though "US" is not a code on the list IRS.gov/CountryCodes.





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