Form 1099-NEC is a variant of Form 1099 used to report Non-Employee Compensation to the contractors. Now, the IRS has moved all non-employee compensation (NEC), defined as payments of $600 or more to independent contractors, income reporting from Box 7 of the Form 1099-MISC to the new 2020 Form 1099-NEC. All other traditional Form 1099-MISC income types, such as rent, other income, or royalties will continue to be reported on the Form 1099-MISC.
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