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.
Last updated January 2021.
January 20, 2021