New 1099 Forms for 2021
We'd like to draw your attention to the new 1099 forms for 2021. If you (as a business) prepare your own 1099’s, please be aware of the changes:
1099-NEC: This form reports nonemployee compensation and/or nonqualified deferred compensation (NQDC). If you are in the trade or business of catching fish, Box 1 may show cash you received for the sale of fish. If the amount in this box is self-employment (SE) income, report it on Schedule C or F (Form 1040 or 1040-SR), and complete Schedule SE (Form 1040 or 1040-SR). You received this form instead of Form W-2 because the payer did not consider you an employee and did not withhold income tax or social security and Medicare tax.
1099-MISC: This form will be used for Royalties, Rents, Other income, Fishing boat proceeds, Medical payments, Crop insurance proceeds and Payments to an Attorney (settlement fees).
Please call our office at (248) 932-0040 if you have any questions regarding these new forms.