1099-NEC

IRS Update: 1099-Nec Now 3 Forms per Page

For tax year 2021, the IRS has redesigned Form 1099-NEC to three forms per page, as compared to the previous year where it was constructed of two forms. Depending on your software settings, a new envelope may be required for distributing recipient copies. Please contact us with questions or for help with ordering compatible products.

Form 1099-NEC Information & Requirements 

As of tax year 2020, nonemployee compensation typically reported on Form 1099-MISC (Box 7 - Nonemployee Compensation), is now required to be reported on Form 1099-NEC (Box 1). The Internal Revenue Service (IRS) and various states are requiring this form to be filed by the effective deadline, January 31, 2022.

We encourage you to prepare early. There will be extra work involved with this change. You may need to switch to a paperless filing method or order additional envelopes or forms. Nelco can help you with either of these.

The IRS estimates that 70% of all 1099-MISC filings will require Form 1099-NEC.
Over 99 MILLION 1099-MISC forms were filed annually according to the latest statistics.
This translates to an estimated 70 MILLION 1099-NEC filings for tax year 2020.

1099-NEC Requirements

1099-MISC Required

For tax year 2021, filing 1099-MISC to the IRS and various states is still mandatory for reporting other types of income.

No Reprogramming

Avoid the work of reprogramming your software. Consider Nelco's paperless reporting service as the only filing method for the 1099-NEC.

State Requirements

Over 30 states have confirmed that they are supporting Form 1099-NEC. Reporting requirements and deadlines vary by state.

Federal Requirements

Federal reporting is required. The IRS has set an effective filing due date of January 31, 2022 for Form 1099-NEC.