1099-NEC form updates

Jan 4, 2021

updated 10/24/2022

1099-NEC form updates for the 2022 tax year

Last year the IRS announced major 1099-NEC form updates, changing the layout to 3 forms on a page, as compared to the previous year when there were 2 forms on a page.

This year, the IRS has made additional updates to the 1099-NEC form that will require reprogramming:

  • Minor border shifts to replace year w/ form name.
  • Added revision date to box and at bottom next to form number.
  • Added new box with calendar year fill-in.
  • Minor verbiage changes on backers to include text additions, text deletions, and replace wording of form year with current year.

These updates will impact your tax form processes, so be sure to plan ahead!

How the 1099-NEC form changes may affect you

Just like last year, you'll need the newer style of envelopes to mail your form 1099-NEC. Envelopes designed to match the old two-to-a-page format won't work with the three-to-a-page configuration.

In addition, you'll need to make sure your accounting software package is up-to-date and the software has been reprogrammed to accommodate the form updates listed above. Check with your software vendor to confirm that the changes have been made and that you have the most up-to-date version of the software before you print your 1099 forms.

What’s the difference between the new 1099-NEC form and 1099-MISC, and which one should I use?

We hear this question a lot since the IRS rolled out the 1099-NEC form. What’s the difference between the 1099-NEC form and 1099-MISC, and which one should I use? 

The short answer is: in 2020, the 1099-NEC form replaced Box 7 on the old 1099-MISC – the box for reporting non-employee compensation. If you paid any non-employee more than $600 for services over the course of 2020, or if you withheld any income tax for a non-employee (regardless of the total amount of compensation) you will need to file form 1099-NEC.  

Why the IRS made this change

Prior to 2020, you reported non-employee compensation in Box 7 on form 1099-MISC. This caused a lot of headaches, because the deadline for reporting non-employee compensation is January 31, but the deadline for the rest of the reporting done on form 1099-MISC is later – February 28 for paper filing, March 31 if filing electronically. By having both types of reporting on the same form, filers risked late penalties being applied to an entire batch of forms if filed after January 31, even if only some of the forms had an amount in Box 7 - i.e., only some of the forms were actually late. 

1099-NEC and 1099-MISC filing deadlines

All non-employee compensation must be reported on form 1099-NEC by January 31, and all other types of income typically reported on the 1099-MISC must be filed by February 28 if filing on paper, or March 31 if filing electronically.  

Where to get 1099 forms

We carry all types of tax forms in our warehouse, ready for same-day/next day shipping (or delivery in the Boise metro area). We also carry matching envelopes for all of our in-stock forms, so you never have to worry about finding what you need to mail your forms on time. Call us at 208.342.3676, or leave us a note. We'll help you get exactly what you need, when you need it!

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