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Level 2
posted Jan 23, 2021 1:30:41 PM

What to do about wrong 1099s?

I am a freelancer and I received over $600 from several customers during 2020.  It seems that everyone is confused about the 1099s.  Instead of sending the 1099NEC, they are sending me 1099misc with an amount in box 3?  Do I need to get all of my customers to send the 1099nec or can I go ahead and file with the 1099misc?  

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1 Replies
Expert Alumni
Jan 23, 2021 1:53:27 PM

The proper way to have them report your freelance income is on Form 1099-NEC. There is much confusion with the change from the 1099-MISC. There is no longer a box for non-employee compensation to be reported. Since your income is not Box 3 income, it has to be reported on Form 1099-NEC.

 

You can refer your customers to this IRS link: 1099-NEC

 

Form 1099-NEC.

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.