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  5. Video: 1099-MISC and 1099-NEC: What's the Difference?

Video: 1099-MISC and 1099-NEC: What's the Difference?

Updated for Tax Year 2021 / October 16, 2021 11:40 AM


OVERVIEW

Starting with the 2020 tax year, certain payments previously reported on Form 1099-MISC will now be reported on Form 1099-NEC if you are self-employed, a freelancer, contractor, or work a side gig and made $600 or more.


For information on the third coronavirus relief package, please visit our “American Rescue Plan: What Does it Mean for You and a Third Stimulus Check” blog post.


 

Video Transcript:

Starting with the 2020 tax year certain payments previously reported on Form 1099-MISC will now be reported on Form 1099-NEC. Businesses will use this form to report payments to nonemployees for work they have done and self-employed individuals should receive this form as a record for how much that business paid them for the year. This enables the IRS to ensure people are properly reporting their income. Form 1099-MISC is still around, but this should be used for reporting miscellaneous payments, like rent, prizes, and awards.

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