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.
January 20, 2021