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

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eFileMyForms Article - Tax Law Change - 1099 MISC Form

Businesses (employers) use the 1099 MISC form when paying freelance workers or contractors (such as a consultant). The 1099 MISC forms are used only when you are in business, when you practice trade. They are not for reporting personal payments. Note that non-profit organizations are considered to be "in business" and thus are subject to using this form. In 2011, there has been a change to the use of the 1099-MISC form. This change involves new circumstances that require use of the form. You now must file a 1099 Miscellaneous income form for each individual or entity that you have paid any of the following items to during the year:

  • At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest;

  • At least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate;

  • Any fishing boat proceeds; or

  • Gross proceeds of $600 or more paid to an attorney.

The above bullets have been excerpted from the website.

There are several exceptions that do NOT require the 1099 MISC form, which are viewable on the IRS website. Be careful not to use the MISC form when another more specific 1099 form applies. These variations of the 1099 form are listed in this article library - just view the article titled, When to file a 1099 form.

All of these forms can be found here on eFileMyForms, where it's easy and inexpensive to file all of your tax forms throughout the year. is a 1099 Pro LLC Service
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