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January 29, 2021
Question

I need to file for nonemployee compensation, which should be a 1098-NEC, but employer sent a traditional 1099-MISC

  • January 29, 2021
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1 reply

KathrynG3
January 30, 2021

You will need to contact the issuer. If you should have received Form 1099-NEC, they need to issue you a corrected Form 1099-MISC with no income as well as Form 1099-NEC with the correct income. 

 

From IRS Instructions for Forms 1099-MISC and 1099-NEC (2020)

Specific Instructions for Form 1099-NEC

File Form 1099-NEC, Nonemployee Compensation (NEC), for each person in the course of your business to whom you have paid the following during the year:

  • At least $600 in:

  1. Services performed by someone who is not your employee (including parts and materials) (box 1);

  2. Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish (box 1); or

  3. Payments to an attorney (box 1). (See Payments to attorneys, later.)
     

Specific Instructions for Form 1099-MISC

File Form 1099-MISC, Miscellaneous Income, for each person in the course of your business to whom you have paid the following during the year:

  • At least $10 in royalties (see the instructions for box 2) or broker payments in lieu of dividends or tax-exempt interest (see the instructions for box 8).

  • At least $600 in:

    1. Rents (box 1);

    2. Prizes and awards (box 3);

    3. Other income payments (box 3);

    4. Generally, the cash paid from a notional principal contract to an individual, partnership, or estate (box 3);

    5. Any fishing boat proceeds (box 5);

    6. Medical and health care payments (box 6);

    7. Crop insurance proceeds (box 9);

    8. Payments to an attorney (box 10) (see Payments to attorneys, later);

    9. Section 409A deferrals (box 12); or

    10. Nonqualified deferred compensation (box 14).