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 1099-NEC Nonemployee Compensation

The IRS Finalizes 1099-NEC Nonemployee Compensation Reporting!

New for Tax Year 2020, the IRS has released the FINAL version of Form 1099-NEC Nonemployee Compensation. Filers must now issue 1099-NEC to report nonemployee compensation (NEC) amounts that previously, were reportable on Form 1099-MISC Miscellaneous Income (Box 7). Prior to Tax Year 2020, separate reporting dates for NEC and non-NEC amounts on 1099-MISC proved challenging to filers. Hence the reintroduction of 1099-NEC, last used in Tax Year 1982!

eFileMyForms supports both the new 1099-NEC and revised 1099-MISC tax forms.


When Do NEC Changes Become Effective?

Changes to nonemployee compensation (NEC) reporting are effective in Tax Year 2020 (which is reportable in Calendar Year 2021).


What Are the 1099-NEC Deadlines?

Generally, recipient copies must be postmarked by January 31 (February 1 for 2021). IRS filings—whether submitted electronically or on paper—are likewise due by January 31 (February 1 for 2021). Automatic IRS filing extensions are not available for this form type.

Prior year (Tax Year 2019 or earlier) NEC amounts should be reported on 1099-MISC.


What About 1099-NEC and State Reporting?

Per IRS Pub. 1220, the 1099-NEC is not participating in the IRS Combined Federal/State Filing (CF/SF) Program. State direct filing will be required for filers with state reporting obligations. State direct filing for most states involves creating a file per IRS Pub. 1220 specifications and submitting it directly to the states’ Department of Revenue website.


Does eFileMyForms Offer State Filing?

eFileMyForms provides filers with complimentary submission to the CF/SF Program for forms that participate. For 1099-NEC tax forms (original records only), eFileMyForms will offer competitively priced state direct filing as an add-on to our Print/Mail/eFile or eFile Only services.


What About Form 1099-MISC?

For Tax Year 2020, 1099-MISC has been extensively revised and renumbered. Use 1099-MISC Income to report rents, prizes, medical payments, attorney payments and other amounts. Do not report NEC amounts on 1099-MISC. Generally, recipient copies must be postmarked by January 31 (February 1 for 2021). IRS paper filings are due by February 28 (March 1 for 2021) and electronic filings are due by March 31. Automatic IRS filing extensions are available for this form type.






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