The PATH Act, P.L. 114-113, Div. Q, sec. 201, accelerated the due date for filing Form 1099 that includes nonemployee compensation (NEC) from February 28 to January 31 and eliminated the automatic 30-day extension for forms that include NEC. Beginning with tax year 2020, use Form 1099-NEC to report nonemployee compensation.
Form 1099-NEC
Redesigned Form 1099-MISC.
Due to the creation of Form 1099-NEC, IRS has revised Form 1099-MISC and rearranged box numbers for reporting certain income.
Changes in the reporting of income and the form’s box numbers are listed below.
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Payer made direct sales of $5,000 or more (checkbox) in box 7.
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Crop insurance proceeds are reported in box 9.
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Gross proceeds to an attorney are reported in box 10.
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Section 409A deferrals are reported in box 12.
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Nonqualified deferred compensation income is reported in box 14.
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Boxes 15, 16, and 17 report state taxes withheld, state identification number, and amount of income earned in the state, respectively.
Use Form8995 to figure your qualified business income (QBI) deduction. Individual taxpayers and some trusts and estates may be entitled to a deduction of up to 20% of their net QBI from a trade or business, including income from a pass-through entity, but not from a C corporation, plus 20% of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. However, your total QBI deduction is limited to 20% of your taxable income, calculated before the QBI deduction, minus net capital gain.
According to IRS website, this form will not be ready until February 7 2021. Your return evidently needs this computation to accurately compute your taxes.
Because of the dates for both of these documents, I suggest you wait to ensure the accuracy of your tax return.
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