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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 2020


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.


The federal tax filing deadline for individuals has been extended to May 17, 2021. Quarterly estimated tax payments are still due on April 15, 2021. For additional questions and the latest information on the tax deadline change, visit our “IRS Announced Federal Tax Filing and Payment Deadline Extension” blog post.

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 make 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. For more tax tips and support, visit TurboTax.com.

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