1099 forms due for businesses on Feb. 1
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Under this change, these individuals can claim an “above-the-line” deduction of up to $300 for cash contributions made to qualifying charities during 2020. The maximum above-the-line deduction is $150 for married individuals filing separate returns.
The Internal Revenue Service reminded businesses and other payors that a revised 1099-MISC and a new 1099-NEC must be furnished by Feb. 1, 2021.
The 1099-MISC form was redesigned this year to accommodate the new 1099-NEC form, according to the IRS.
The 1099-MISC must be filed with the IRS by March 1 or March 31, if filing electronically.
The IRS states, “Form 1099-NEC is a new form for tax year 2020 for nonemployee compensation of $600 or more to a payee. This form should be filed with the IRS, on paper or electronically, and sent to recipients by Feb. 1, 2021.”
No 30-day automatic extension exists for the 1099-NEC form.
