How do I file a 1099-NEC

Forum|Forum|6 years ago
January 28, 2020
19 replies
111 views

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Best answer by JohnW152

Form 1099-NEC, Nonemployee Compensation, is currently only available as a draft IRS form.

It can't be filed yet.

Starting with payments made in 2020, non-employee compensation paid to independent contractors will need to be reported on Form 1099-NEC instead of in box 7 of

Form 1099-MISC.

JohnW152Answer

Level 15

Form 1099-NEC, Nonemployee Compensation, is currently only available as a draft IRS form.

It can't be filed yet.

Starting with payments made in 2020, non-employee compensation paid to independent contractors will need to be reported on Form 1099-NEC instead of in box 7 of

Form 1099-MISC.

ed_music_etc

Level 2

This reply is untrue. The 1099-NEC is not a draft form. I've ordered them from the IRS, completed them, and administered them myself outside of Turbo Tax.

Your 1099-MISC form is the correct version, which was issued this year. A notice of this change was given in early 2020. This was no "draft" situation.

Moreover, the TurboTax Home and Business program CREATES them. How could your own product create a draft form?

So a better question: when will the product that we paid for be usable because it contains the correct 1099-NEC form? Or should I ask for a refund?

Anonymous_

Level 15

@ed_music_etc wrote:

This reply is untrue.

The reply was true on the date it was written.

x1114804

Level 2

I have installed Turbotax home and business and cannot find 1099 NEC. Where is it?

DawnC

Level 15

If you received a 1099-NEC, it is entered under Business Income and Expenses. You will need to enter your business information which will create your business profile. Once you have done that, you will find the entry under Business Income which will be within the Business Income and Expenses section. It goes in the same area as the 1099-MISC and 1099-K.

If you need to prepare 1099-NEC, you will see that option when you select ''Start New Tax Return''. @x1114804

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VolvoGirl

Level 15

If you are not showing 1099NEC income you need to update your program. It was just added on Jan 7. Are you on Windows? Go up to Online - Check for Updates. Or do you need to prepare a 1099NEC to give to someone you paid?

linaj20201

Level 14

Here are the steps:

In TurboTax online,

Sign into your account, select Pick up where you left off
From the upper right menu, select Search and type in 1099nec and Enter
Select the Jump to 1099nec
Follow prompts

Beginning with the 2020 tax year, the IRS will require business taxpayers to report nonemployee compensation on the new Form 1099-NEC instead of on Form 1099-MISC. Businesses will need to use this form if they made payments totaling $600 or more to a nonemployee, such as an independent contractor. This was done to help clarify the separate filing deadlines on Form 1099-MISC and the new 1099-NEC form will be used starting with the 2020 tax year.

One of the most common reasons you’d receive tax form 1099-NEC (Form 1099-MISC in prior years) is if you're self-employed or did work as an independent contractor during the previous year. The IRS refers to this as “nonemployee compensation.”

In most circumstances, your clients are required to issue Form 1099-NEC when they pay you $600 or more in any year.
As a self-employed person, you're required to report your self-employment income if the amount you receive from all sources totals $400 or more. For more information, click here: 1099-NEC

@taxfile2019rb