[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-303291-105":53,"doc-detail-303291-en":127},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":120,"head_meta":122,"extra_data":124,"updated_unix":126},105,"en","independent-contractors-puzzle-irs-form-1099-nec","Independent Contractors Puzzle - IRS Form 1099-NEC","","Independent contractors must handle changing IRS Form 1099 requirements, especially for 2020 payments reported on Form 1099-NEC instead of the prior Form 1099-MISC Box 7 approach. The timing of filing and payment deadlines, the need for accurate estimates, and the cost of self-employment tax are highlighted, including the 15.3% calculation structure. Guidance addresses correcting 1099 errors, reporting missed or lost forms, updating addresses, and using IRS transcripts to reconcile income.",{"@graph":63,"@context":119},[64,80,102],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":41,"@type":70,"position":76},"https://docshare.wps.com/template/letters/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/independent-contractors-puzzle-irs-form-1099-nec/303291/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/independent-contractors-puzzle-irs-form-1099-nec/303291.png","ImageObject",442,249,{"name":88,"@type":89},"Connor ","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-10-02","2026-09-19",true,{"@type":98,"interactionType":99,"userInteractionCount":101},"InteractionCounter",{"@type":100},"ViewAction",6,{"@type":103,"mainEntity":104},"FAQPage",[105,111,115],{"name":106,"@type":107,"acceptedAnswer":108},"What is the key deadline difference for independent contractors in 2021?","Question",{"text":109,"@type":110},"You can automatically extend to October 15 to file, but payment is still due by April 15. If you extend filing, you must still estimate and pay what you expect to owe by April 15.","Answer",{"name":112,"@type":107,"acceptedAnswer":113},"How does Form 1099-NEC differ from Form 1099-MISC for 2020 payments?",{"text":114,"@type":110},"For 2020, the IRS created Form 1099-NEC to report payments to independent contractors, and it presumptively triggers self-employment tax. Box 7 of the old 1099-MISC approach was essentially shifted into this new 1099-NEC structure.",{"name":116,"@type":107,"acceptedAnswer":117},"What should you do if you receive an incorrect or missing Form 1099?",{"text":118,"@type":110},"If there is an error, tell the payer immediately and ask for a corrected form if needed. If you don’t receive your copy or the form is lost, the IRS still receives the information based on your Social Security number, so you must report all income and you can cross-check using an IRS transcript.","https://schema.org",{"og:url":78,"og:type":121,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":123,"canonical":78},"index,follow",{"doc_id":125,"site_id":56},303291,1790316913,{"code":4,"msg":5,"data":128},{"doc_id":125,"user_id":129,"nickname":88,"user_avatar":130,"doc_module":9,"category_id":40,"category_name":41,"doc_title":59,"doc_description":61,"doc_content":131,"file_id":132,"file_url":133,"file_type":134,"file_size":135,"view_count":101,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":9,"language":136,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":61,"update_tm":140,"read_time":4},687207022233,"https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d","MONDAY, FEBRUARY 22, 2021  \nIndependent contractors puzzle over new IRS Form 1099-  \nNEC  \nBy Robert W. Wood   \nTaxes and tax filings are unpleasant yet inevitable. We all  \nhave to file tax returns and pay taxes, and those  \nobligations will be here before you know it. In 2020, with the onset of COVID and closures everywhere, the IRS gave special dispensation, making the usual April 15 filing and payment deadline for 2019 tax returns July 15, 2020. But it’s 2021 now, and it is clear that the April 15 filing deadline this year will not be extended.  \nOf course, you can go on automatic extension until October 15 if you want. But that is an extension to file your return, not an extension to pay. Therefore, even if you extend until October, you need to pay by April 15 what you expect to owe when you later file your return. If you hope to have an accurate estimate of what to pay by April 15, at a minimum, you need to do some spade work to come up with an accurate figure. After all, if you end up owing more money when you file on October 15, penalties will be added.  \nOne place to begin is IRS Forms 1099, which arrived around the end of January 2021 for 2020 payments. The IRS likes these forms because they allow easy computer matching of your Social Security Number against your tax return. Businesses issue the forms to anyone who receives $600 or more for services during the year. There are many types of 1099 with different thresholds.  \nFor example, you probably received a Form 1099 for every bank account, even if you only earned $10 of interest. The most common variety of reporting form is Form 1099-MISC, for miscellaneous income. But the newest one in the 1099 series is Form 1099-NEC, and it covers the waterfront for any independent contractor. Over the last decade, there has been a virtual explosion of gig workers, and the result is that they now have their own 1099 form.  \nUp until 2020, if you were a company paying an independent contractor, you reported the payment on Form 1099-MISC. You put the amount of the payment in Box 7, for non-employee compensation. For 2019 and prior years, putting income in Box 7 of a Form 1099-MISC usually tipped the IRS off that you should be paying self-employment tax too.  \nHowever, for 2020 payments, the IRS developed a new form for reporting payments to independent contractors. The new form is IRS Form 1099-NEC. Many lawyers or law firms acting as independent contractors received these forms too. If you receive one, remember that self-employment tax can be expensive. It is equivalent to both halves of the employer and employee payroll taxes that apply to wages, which are reported on Form W-2.  \nHow expensive? Self-employment tax can add a whopping 15.3 percent on top of income taxes. That 15.3 percent applies up to the wage base of $137,700, with 2.9 percent tax thereafter on any excess over $137,700 . There’s no limit on that 2.9 percent, even if you earn millions. In short, self-employment taxis nothing to sneeze at.  \nYou can read more about Form 1099-NEC for reporting 2020 payments to independent contractors on the IRS website, or on the detailed IRS instructions for Form 1099-NEC. Now that independent contractors have their own unique form of Form 1099, what happened to Form 1099-MISC? Box 7 of the old form was essentially made into a whole new form for independent contractors.  \nForm 1099-MISC is still with us and is still widely used. However, for 2020 and subsequent-year payments, the available choices on Form 1099-MISC are more limited. Most payments are recorded in Box 3, as “other income.” Other income is the most general of categories, and is still probably the default category for payments. However, saying “other income” makes it likely that the IRS would not assume that selfemployment taxes should apply.  \nIndeed, a moveto try to collect more self-employment taxes seems to have been the major impetus behind the IRS creating Form 1099-NEC. In the past, too many companies reported","cbCaiuc94Xb4BpYE","https://ap.wps.com/l/cbCaiuc94Xb4BpYE","pdf",190330,"English","# IRS filing and payment timing\n## Automatic extension vs payment deadline\n# Understanding IRS Forms 1099\n## Form 1099-NEC for independent contractors\n## How Box 7 and Box 3 changed\n# Self-employment tax implications\n## 15.3% calculation and limits\n# Fixing errors and responding to notices\n## Corrected forms and explaining differences\n## Reporting missing or lost 1099s","[{\"question\":\"What is the key deadline difference for independent contractors in 2021?\",\"answer\":\"You can automatically extend to October 15 to file, but payment is still due by April 15. If you extend filing, you must still estimate and pay what you expect to owe by April 15.\"},{\"question\":\"How does Form 1099-NEC differ from Form 1099-MISC for 2020 payments?\",\"answer\":\"For 2020, the IRS created Form 1099-NEC to report payments to independent contractors, and it presumptively triggers self-employment tax. Box 7 of the old 1099-MISC approach was essentially shifted into this new 1099-NEC structure.\"},{\"question\":\"What should you do if you receive an incorrect or missing Form 1099?\",\"answer\":\"If there is an error, tell the payer immediately and ask for a corrected form if needed. If you don’t receive your copy or the form is lost, the IRS still receives the information based on your Social Security number, so you must report all income and you can cross-check using an IRS transcript.\"}]","Independent Contractors Puzzle - IRS Form 1099-NEC | PDF",1789801653]