Form 1099 MISC - IRS New Changes for 2021 - Explained
Updated on November 23, 2021 - 10 :30 AM by Admin, TaxBandits
The Form 1099-MISC has undergone big changes in the past tax year or two. Up until the tax year 2019, this form was used to report non-employee compensation (in box 7). Then, for the 2020 tax year, the IRS re-introduced Form 1099-NEC for the sole purpose of reporting non-employee compensation separately. Now the Form 1099-MISC is primarily used to report Miscellaneous Information.
1. What are the New changes on 1099 MISC for the 2021 Tax Year?
- The most notable change is Form 1099-MISC’s new name. The Form 1099-MISC title is now changed to Miscellaneous Information. Previously it was Miscellaneous Income.
Changes on Box 7 of Form 1099 MISC
- Box 7 is now renamed: Payer made direct sales totaling $5,000 or more of consumer products to the recipient for resale.
Changes on Box 11 of Form 1099 MISC
- Box 11 has also been updated, payers should report Fish Purchased for Resale
in this box.
- This was previously reported on Form 1099 NEC and now filers need to report on Form 1099 MISC Box 11
Changes in Electronic Filing Requirement
- There may be some changes to the e-filing requirements under the TaxPayers First Act of 2019. Under a recent IRS proposal, the current limit of 250 forms would be reduced to 100. The proposal has not been finalized yet, but there is a chance that it could affect your 2021 reporting.
2. When is the Form 1099 MISC deadline?
- Form 1099-MISC has 3 different deadlines. One for sending out the recipient copies, one for paper filing and another for e-filing. In order to stay IRS compliant, payers need to file Form 1099-MISC, reporting miscellaneous Information before the deadline.
- Recipient copies must be distributed by January 31st. If you are reporting payments in box 8 or 10, the due date is February 15, 2022
- If you are paper filing copies with the IRS, the deadline is February 28
- If you are filing 1099-MISC electronically, the deadline is March 31
Want to know the 1099 State Filing Deadline?
The deadline to file form 1099 will vary for some states. Check your state 1099 filing deadline https://www.taxbandits.com/state-filing-requirements/.
Note: If the filing deadline falls on a Saturday, Sunday, or legal holiday, the deadline automatically becomes the next business day.
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3. Advantages of filing 1099 MISC Electronically with TaxBandits
E-filing with TaxBandits is a great way to ensure easy and accurate filing for the 2021 tax year. TaxBandits offers time-saving features like bulk uploads to streamline your filing process and prepaid credits to help you file faster and at the lowest price. Need a recipient copy solution? We offer both postal mailing and online access options!