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IRS 1099 MISC Tax Form- What’s updated in 2021?

IRS 1099 MISC Tax Form- What’s updated in 2021? In the previous tax year 2020, the IRS has revived back “1099 NEC Form”. Most of the taxpayers think is 1099 MISC Form going away. But, along with bringing back the old 1099 NEC form, the IRS has revised back 1099 MISC boxes. Along with the prior year’s changes, the IRS has updated Federal 1099 MISC in 2021.

Form 2021 tax period, you can use 1099 MISC tax Form box 7 & Form 1099 NEC box 2 to report direct sales of consumer products. Know about the updates made in the 1099 MISC Tax return & report the payments to the IRS.

IRS 1099 MISC Tax Form Title Changed

As per the IRS 2021 instructions, the “IRS 1099 MISC Form” title has been changed. Previously, it was known as “Miscellaneous Income Form”. But from 2021, it calls as the “Miscellaneous Information Tax Form”. Therefore, the change has occurred only in the title. Furthermore, it doesn’t influence the reporting threshold or payments reported on the form.

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1099 MISC Form Box 11 Added

Along with the change in the title of Form 1099 MISC, the IRS also added box 11 that was reserved in the prior years. Also, use box 11 to report payments made under section 6050 R. This means cash payments made for the purchase of fish for resale purposes can report on 1099 MISC box 11.

In the prior year, cash payments made to purchase fish from an individual involved in the trade of catching fish were reported on 1099 NEC. But from 2021, use “IRS 1099 MISC box 11” to report cash payments made for purchasing fish instead of 1099 NEC box 1.

Federal 1099-MISC Boxes in 2021

As per the IRS norms, 1099 MISC boxes have been revised in the tax year 2021. Check out the details about the payments report in the boxes:

BoxesPayment information
1Enter the amount of $600 or more paid as real estate rentals, machine rentals, and pasture rentals.
2Amount of $10 or more paid as royalties from oil, gas, or other mineral properties, & for intangible properties.
3Report $600 or more paid as prizes or awards, not for services performed, deceased employee wages, payments to tribal members, punitive damages, H-2A visa agricultural worker.
4Enter the amount withheld under backup withholding rules.
5Report the fishing boat proceeds of $600 or more.
6Payments of $600 or more are made to a physician or other provider of medical or health care services.
7Check the box if the payer made any direct sales of $5,000 or more of consumer products for resale. Don’t enter the dollar amount in this box.
8Enter the aggregate payments of $10 or more instead of dividends or tax-exempt interests in this box.
9Crop insurance proceeds of $600 or more are given to the farmers.
10Gross proceeds of $600 or more paid to attorneys for performing legal services.
11Total cash payments of $600 or more made to an individual involved in the trade of catching fish.
12Enter the total deferred amount of $600 or more made to a non-employee under non-qualified plans.
13Report the excess golden parachute payments in this box.
14Use this box to report nonqualified deferred compensation.
15-17Provide state information if you withheld any state taxes in these boxes.

Is there a change in the 1099 MISC deadline?

No, the deadlines remained the same. As per the IRS guidelines, IRS 1099 MISC Tax Form due dates are given below:

  • Submit 1099 MISC Copy A to the IRS through the paper file by February 28th, 2022 & e-file by March 31st, 2022.
  • Furnish 1099 MISC Form Copy B with boxes 8 & 10 to the recipients by February 15th, 2022.
  • Recipient Copy B of 1099 MISC without boxes 8 & 10 issued by January 31st, 2022.

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IRS 1099 MISC Tax Form- What’s updated in 2021 has on this page. Ready to file 1099 information returns? Searching for an IRS authorized e-file provider? Form 1099 Online an IRS trusted & certified e-file provider. Also, register with us for free & start filing your federal 1099 returns now. Pay only when you submit tax returns with us. No hidden charges apply.

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