Have You Heard About the 1099-NEC?
The IRS has taken Non-Employee Compensation out of the 1099-MISC and created a new form 1099-NEC for 2020. The 1099-NEC is to be used only for reporting independent contractor payments of $600 or more in the course of trade or business. You will still be required to use the 1099-MISC for such items as royalties, rent, and healthcare payments.
To be clear, you will need to use both forms if you have made NEC contractor payments AND royalties, rent, and healthcare payments during the year.
