The New 1099-NEC IRS Form for Second Shooters & Independent Contractors (formerly 1099-MISC)


We all know that the IRS just loves throwing a wrench in our tax filing systems. Well, I hate to be the bearer of bad news… but it’s not actually that bad (just a change in paperwork):


If you hired any independent contractors throughout the year (second shooters, assistants, etc) that earned $600+, you used to have to file a 1099-MISC form to report this income.

WELL, this year, instead of reporting that income in Box 7 of Form 1099-MISC, they created a “new” form (it’s actually an old form that was retired in 1983 that they decided to bring back) to report just this income on: a Form 1099-NEC (“Non Employee Compensation”).

(If you paid that contractor through credit card processing companies such as Paypal, Stripe, etc., no need to issue them a form. That company will be filing a 1099-K instead. Just list your payments to that contractor as a regular expense when you file your taxes.)

It’s super simple to fill out, very similar to the 1099-MISC, just remember that it has to be filed by January 31st (or the first business day thereafter).

Here’s an example of how you would fill it out. 👇

example new 1099-NEC IRS form as of 2020



You can file online using the IRS’s FIRE system, Turbo Tax’s Quick Employer Forms, or another approved software/system:
https://fire.irs.gov/ | https://quickemployerforms.intuit.com/

turbo tax for small business owners and photographers

📷

Last updated January 2021.

Click here for more educational blog posts & free resources!

 

 

 

January 20, 2021

Want to learn more about packages?

Visit the Website!