Be on the Lookout for new form 1099-NEC

If you’re self-employed, an independent contractor or a freelancer, there’s a big change coming thanks to the IRS.

For almost 40 years, you’ve received a 1099-MISC from businesses to which you provided more than $600 in services. Startingwith the 2020 tax filing season, you’ll be receiving Form 1099-NEC instead.

Here’s what you need to know about this change:

Form 1099-NEC is used exclusively to report nonemployee compensation.

Nonemployee compensation is any payment you received from a business in exchange for your products and/or services. Nonemployee compensation also includes fees, commissions, prizes and awards.

Form 1099-MISC is not going away.