---
title: 3 Things to Know About Form 1099-NEC
description: Form 1099-NEC is reporting independent contractor income-if you work with contractors or do contracting work as someone who’s self-employed.
image: https://blog.plumbbillpay.com/hubfs/Imported_Blog_Media/1099-nec-612x400.jpg
---

![](https://blog.plumbbillpay.com/hubfs/Imported_Blog_Media/1099-nec-612x400.jpg)

![](https://blog.plumbbillpay.com/hubfs/Imported_Blog_Media/1099-nec-612x400.jpg)

## What is Form 1099-NEC (Nonemployee Compensation)?

The IRS is bringing back a form last used in 1982s —Form 1099-NEC, to be used beginning with 2020 information returns. The draft 2020 version of the form has been posted by the IRS to the agency’s website. Part of the rationale for the new Form **1099**–**NEC** was that the Protecting Americans from Tax Hikes (**PATH**) **Act** of **2015.**

It will be used to report at least $600 payments made to each person during the calendar year for your business:

- Services performed by someone that was not your employee 
    - Include parts/materials used to perform the service
- Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish
- Payments to attorneys

Withheld any federal income tax under the backup withholding rules regardless of the payment amount.

## Common examples of who will receive Form 1099-NEC:

- Attorneys
- Architects
- Accountants
- Graphic Designers
- Web Developer
- IT Consultants
- Freelance writer
- Non-employee Sales Commission
- Freelance Contractors
- Landscapers
- Other self-employed individuals

## Form 1099-NEC:

**Due to IRS & Recipient *2/1/21***

- A IRS
- 1 State Tax Department
- B Recipient
- 2 Recipient copy to be filed with state income tax return (if applicable)
- C Payer

## Form 1099-MISC:

**Due to recipient by *2/1/21* or *2/16/21* if reporting in box 8 or 10. Due to IRS by *3/1/21* (paper) or *3/31/21* (electronic)**

- A IRS
- 1 State Tax Department
- B Recipient
- 2 Recipient copy to be filed with state income tax return (if applicable)
- C Payer

### Ready to start your new year with organized financials in preparation for tax season? Plumb Family CFO works in partnership with your CPA and personal financial team.  Fill out the form below to find out more.

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