Non Employee Compensation
The Form 1099-NEC, Nonemployee Compensation, is used to report non employee compensation, non qualified deferred compensation and cash payments for fish. Form 1099-NEC is a new form for tax year 2020 for nonemployee compensation of $600 or more to a payee.
Form-1099-MISC is used to report rents, royalties, awards, prizes and other payable income. The creation of Form 1099-NEC, resulted in a revision to Form 1099-MISC, and box numbers for reporting income were changed. Visit the IRS website to read Instructions for Forms 1099-NEC and 1099-MISC