New Tax Form For Business Owners (and others)
Just an IRS alert:
For many years, we used 1099-Misc to report payment to nonemployee compensation (money we paid another individual or company) most often for services they provided above $600.
That’s changed this year and I am providing some resources to you to learn more. Unfortunatly, the IRS has not changed the process by which we complete NEC or the MISC form. So remember: you need an original copy of a form, available free to order at IRS website or buy in your local Office Supply store, etc. Do not find a form and then print it from an online source.
Beginning with Tax Year 2020, you must use Form 1099-NEC, Nonemployee Compensation, to report payments of nonemployee compensation (NEC) previously reported in box 7 on Form 1099-MISC. Do not order Form 1099-MISC for reporting NEC. The separate instructions for filers/issuers for Form 1099-NEC are available in the 2020 Instructions for Forms 1099-MISC and 1099-NEC.
To learn more about 1099 NEC and the change
To order free 1099 NEC forms and instructions
NOTE: I am not a Tax Advisor. I am providing this information FYI. Please consult your CPA, Accountant, EA, or tax advisor before using any of the information provided above.
Upwards and onwards,
Coach Maria
About The Author
An irrepressible entrepreneur, Maria Marsala sold AVON at age 14 and landed on Wall Street three years later. She became a bond trader when female executives were as rare as pink diamonds. For 25 years, Maria streamlined Fortune 500 companies, nurtured non-profits, and discovered her niche—mentoring women CEOs and executives. Armed with corporate secrets and life coach credentials, Maria founded Elevating Your Business to help female financial professionals live better using her proprietary brand of consultative-coaching. Contact Maria today and take the first step toward freedom, full-fillment, and a sparkling quality of life! Contact me now!
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