On December 14, 2021, the IRS published Form 1099-NEC (Rev. January 2022), a continuous use form. This form is nearly identical to the 2021 Form 1099-NEC. Both the newly published 2022 Revision and the 2021 Form have updates from the 2020 form.
As a refresher, the boxes in these forms align a bit differently from the 2020 form and there are a few changes:
- Box 2, previously reserved on the 2020 form, is now a checkbox, and if checked, it indicates that consumer products totaling $5,000 or more were sold to the payee for resale, on a buy-sell, a deposit-commission, or other basis. The taxpayer would report any income from the sale of these products on Schedule C (Form 1040).
- Instructions for the recipient now include additional information. First, they inform payees that they are receiving Form 1099-NEC instead of Form W-2, because the payer did not consider them to be employees and did not withhold income tax or social security and Medicare tax.
- If payees believe that they are employees and the payor refuses to correct the Form 1099-NEC, then the payees must report the amount reflected in box 1 on the line for “Wages, salaries, tips, etc.” of Form 1040, 1040-SR, or 1040-NR. Payees must also complete Form 8919 and attach it to their return. Payees can find further instructions in Publication 1779, Independent Contractor or Employee.
- If payees are not employees, but the amount in box 1 is not self-employment income then the payees report the amount shown in box 1 on the “Other income” line (on Schedule 1 (Form 1040)).
- Instructions for the payor now push the payor to the current General Instructions for Certain Information Returns for filing and furnishing instructions, due dates, and requests for filing or furnishing extensions.
Check out Form 1099-NEC (Rev. January 2022) here:
If you are looking for the 2021 Form 1099-NEC, you can find it here:
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