Form 1099-NEC is a tax document that reports compensation paid by a business to someone who is not an employee. It's a relatively new tax document, having been reintroduced in 2020.

While Form 1099-MISC is used to report payments that aren't subject to self-employment tax, 1099-NEC reports non-employee compensation.

While Form 1099-MISC is used to report … Continue reading → The post Form 1099-MISC vs. 1099-NEC appeared first on SmartAsset Blog.

Form 1099-MISC: Miscellaneous Information, is an IRS form used to report certain types of nonemployee compensation.

While there are many types of Form 1099, they all serve to report non-employment income to the IRS.

If you were self-employed in 2020, you may have received Form 1099-NEC, Nonemployee Compensation, instead of Form 1099-MISC you may have received in years past. Why the change? In short: the IRS ...

Knowing when to issue which kind of 1099 form to someone you paid money to can be a mystery to small business owners, but we'll try to clear up any confusion.

1099-NEC vs. 1099-MISC forms Two of the most common and widely used 1099 forms are the 1099-NEC and the 1099-MISC. Here’s the difference between the two: ...

The most common type is Form 1099-MISC, for miscellaneous income. But the newest is Form 1099- NEC. Up until 2020, paying to independent contractors went on 1099-MISC, in Box 7, for non-employee ...

Whether you're a business owner who relies on independent contractors or you make your living as a freelancer, understanding the difference between Form 1099-MISC and 1099-NEC is critical to ...

While Form 1099-MISC is used to report … Continue reading → The post Form 1099-MISC vs. 1099-NEC appeared first on SmartAsset Blog.