1099 MISC Form 2020 Changes Influence the Taxpayer: Are you filing 1099 MISC Form in the 2020 tax year? Before filing did you know about changes made in 1099 MISC Form boxes? If your answer is “No”, then we’ll let you know about the changes of 1099 MISC Form.
Here we’ll provide you information regarding 1099 MISC Form changes influenced in 2020, changes affect the taxpayer, 1099 MISC Form filing circumstances for 2020 tax year and where to file 1099 MISC Form in 2020 tax year. We’ll also provide you service to file 1099 MISC Form electronically.
What are the 1099 MISC Form changes influence in 2020?
The change in 1099 MISC Form for 2020 tax year influenced:
Separated non-employee compensation
The changed 1099 MISC Form separated the non-employee compensation to a new form 1099 NEC. This made the taxpayers to report miscellaneous income through 1099 MISC Form and non-employee compensation through 1099 NEC Form.
Cleared dual filing dates
Due to PATH Act 2015, there was confusion when filing 1099 MISC Form. Dual filing dates for 1099 MISC Form made the payers confused and to face unexpected penalties. To clear this confusion IRS changed 1099 MISC Form reporting boxes and separated non-employee compensation box to a new 1099 NEC Form. The change in 1099 MISC Form cleared the dual filing date confusion.
Different deadline to furnish Copy B
The changed 1099 MISC Form has different filing deadline to furnish copy B. if you are reporting gross proceeds through box 10, you’re required to furnish Copy B of the Form to the recipient by February 16, 2021. The due date to furnish 1099 MISC copy B is same for box 8 payments. The remaining boxes of 1099 MISC Form due dates to furnish Copy B is February 1st, 2021.
1099 MISC Tax Form changes affect the taxpayer
The following 1099 MISC Form changes affected the taxpayer for the 2020 tax year:
- The taxpayer can easily report the miscellaneous income paid to the individual through 1099 MISC Form in the 2020 tax year.
- The copy B of the Form 1099 Online MISC is issued to the recipient before February 1st, 2021. This made the taxpayer to correct any errors made in filing 1099 MISC Form.
- The taxpayer e-file 1099 MISC Form directly if the Forms are more than 250.
Federal 1099 MISC Form 2020 filing circumstances
The following are the circumstances to file 1099 MISC Tax Form for the 2020 tax year:
- If the tax payer pays miscellaneous income to an individual person, then file 1099 MISC Form. Don’t use 1099 MISC Form to report non-employee compensation. Instead use 1099 NEC Form to report non-employee compensations.
- The miscellaneous income paid to the independent contractor must exceed $600 as rent, dividends and interests, crop insurance proceeds, gross proceeds paid to attorneys etc. and $10 paid as royalties during the tax year.
- If you backup withheld federal and state taxes under backup withholding rules.
How the tax payer files 1099 MISC Form in 2020?
The filing process of 1099 MISC Form for the 2020 tax year is given below:
Firstly, the taxpayer required to choose the process of filing. You can file 1099 MISC Form by paper filing or e-filing. If you file less than 250 Forms then you can choose paper filing. If you file more than 250 Form 1099 MISC, then file electronically.
If you’re filing miscellaneous income electronically, then file 1099 MISC Form with the IRS using the e-file provider. Choose an IRS authorized e-file provider to process your information return securely with the IRS.
Select the 1099 Form you’re filing through E-file provider site. You’re reporting miscellaneous income then choose 1099 MISC in the e-file provider site.
Provide the details
You’re required to provide to details to fill 1099 MISC Form online. This includes payer details, recipient details, miscellaneous income paid etc.
Submit 1099 MISC Form
Then submit the 1099 MISC Form to the IRS and to the recipient within the due date.
Where to file 1099 MISC Form for 2020 tax year?
Miscellaneous income paid to the individual person, are reported through 1099 MISC Form to the IRS electronically. The most adaptive filing process for the 2020 tax year is e-filing 1099 MISC Form. In the 2020 tax year, the payments made with the independent contractors are increased numerously. Along with the payments filing the 1099 Forms to report miscellaneous payments are rapidly increasing. This made the taxpayer to reduce paper filing.
Note: Issue the 1099 MISC Form copies with the IRS and to the payee with in the due date to avoid penalties.
Does I need to include 1096 Form with 1099 MISC Form in 2020?
No, you’re not required to include 1096 Form with 1099 MISC Form in 2020. 1096 Forms summarizes about the information returns you are submitting through paper.
For the 2020 tax year, most of the miscellaneous income reported online. If the taxpayer files 1099 MISC Form electronically, there no need of transmittal 1096 Form the payments reported. If you paper file 1099 MISC Form, then you’re required to include a 1096 transmittal form.
Have you got clear information about 1099 MISC Form 2020 Changes Influence the Taxpayer? Then gather all the required information to file 1099 MISC Form electronically. Be sure about the information provided through 1099 MISC Form before submitting. We’ll guide in filing 1099 MISC Form online. Only one step you need to complete, signup with us and file your 1099 MISC Form conveniently sitting at your place.