topic 1099-Misc duplicated as 1099-NEC for 2019 in Get your taxes done using TurboTax

1099-Misc duplicated as 1099-NEC for 2019

debbieacog — Sun, 14 Mar 2021 15:20:51 GMT

Hi,

In preparing my household's 2020 taxes (Windows home & business), in the side-by-side view of 2019 vs. 2020, TurboTax is showing a recurring annual 1099 amount of $3,600 as BOTH a 1099-NEC and 1099-Misc for 2019. This alarmed me that I might have done the 2019 taxes wrong, but in opening the 2019 file with TurboTax 2019 it only shows the one 1099-Misc, correctly included once as income. Is anyone else seeing this? I'm hopeful it's just a bug with the new 1099-NEC classification and how TurboTax shows it for the previous year.

Re: 1099-Misc duplicated as 1099-NEC for 2019

ColeenD3 — Sun, 14 Mar 2021 16:29:29 GMT

Yes. You would use the new 1099-NEC, unless you need to pay your household employee with a W-2.

You must file Form W-2 for each household employee to whom you paid $2,200 or more of cash wages in 2020 that are subject to social security and Medicare taxes.

If you paid your employee $2,200 or more in 2020, you should withhold and pay Social Security and Medicare on all of her wages. If you paid your employee $1,000 or more in a quarter in 2020, you must pay the federal unemployment tax, or FUTA. (You may also owe state unemployment taxes.)

Generally, for 2020 an employer needs to pay Social Security and Medicare taxes for “cash wages” of $2200 or more paid to any one employee. Cash wages refer to checks, money orders and the like. They don’t include “the value of food, lodging, clothing, transit passes and other noncash items you give your household employee.” But cash given to an employee in place of those items counts as cash wage.

Re: 1099-Misc duplicated as 1099-NEC for 2019

debbieacog — Tue, 16 Mar 2021 22:41:29 GMT

Coleen, thanks for the answer. I left out a key piece of data. These are 1099s we are receiving, not issuing. He's the contractor, not the employer.

In the side-by-side view of 2019 vs. 2020, TurboTax 2020 is now showing the $3,600 *both* as a 1099-NEC *and* a 1099-Misc in the 2019 column - making it look like I entered it twice.

I went back to TurboTax 2019, appalled, to double check, but it only shows as entered once, one single 1099-Misc. Therefore, I think this is a bug in TurboTax 2020 and would like to know if anyone else has seen that.

Re: 1099-Misc duplicated as 1099-NEC for 2019

AnnetteB6 — Wed, 17 Mar 2021 12:52:05 GMT

I do not recall seeing this reported by other users, but it is most likely a result of implementing the new Form 1099-NEC into the TurboTax program. It certainly is not making any changes to your 2019 return, as you already confirmed.

@debbieacog