Top 5 Mistakes To Avoid When You E-file Form1099 Nec Online For Ty 2021

For the tax year 2021, the IRS will continue to use the relatively new Form 1099-NEC to enforce its filing requirements. Traditionally, businesses have used Form 1099-MISC – Box 7 to report nonemployee’s compensation. Now, you may need to use both 1099 forms and follow their unique specifications. If you are involved in a business, you must file IRS Form 1099-NEC to report any nonemployee compensation of $600 or more. Nonemployee compensation includes fees, commissions, prizes, awards, and any other forms of compensation for services performed by someone who is not classified as an employee.

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