IRS Form 1099-MISC is used to report miscellaneous payments made. For the tax year 2020, 1099-MISC Form has changed. In the past, one of the miscellaneous payments to report on Form 1099-MISC Box 7 was payments made to independent contractors. Those payments will now be reported on For, 1099-NEC.
When You Need to File Form 1099-MISC?
- If you paid at least $600 in cash payments for:
- Prizes and awards
- Other income payments
- Medical and health care payments
- Crop insurance proceeds
- Payments to an attorney
- Fish (or other aquatic life) purchased from anyone in the business of catching fish
- If you paid at least $10 in royalties
- If you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment (place of business that remains unmoving for a considerable amount of time, and includes places like hotels or grocery stores; opposite of a permanent retail establishment could be a mobile business)
IRS Form 1099-MISC Deadlines 2020
Forms must be transmitted to the IRS before the deadline. The due date for eFiling for Form 1099-MISC is March 31, 2021. If the due date falls on a weekend or holiday, it will be due the next business day.