Are You Required To Send a 1099-Misc or 1099-NEC?
You are required to send a 1099-Misc to any individual, sole proprietor, partnership or LLC (no corporations) to whom you paid $600 or greater in a calendar/tax year. The most common inclusions for a required 1099-Misc are: Rent payments (Box 1); Prizes & Awards or Other Income payments (Box 3); Fishing Boat Proceeds (Box 5); Medical & Health Care payments (Box 6); Crop Insurance proceeds (Box 9); Gross proceeds paid to Attorneys (Box 10); Nonqualified Deferral Compensation (Box 14).
1099-Misc forms must be filed with the IRS prior to February 28, 2022, if filing by paper. They must be filed with the IRS prior to March 31, 2022, if filing electronically. 1099-Misc forms must be accompanied with transmittal form 1096.
EXCEPTION: If the payments are made via debit card, credit card or PayPal, you are not responsible to send a 1099-Misc. Payments will be reported by the settlement entity in the form of a 1099-K.
You are required to send a 1099-NEC (Non-Employee Compensation) to any vendor(s) to whom you paid $600 or greater in a calendar/tax year.
1099-NEC forms must be filed with the IRS prior to January 31, 2022 accompanied with transmittal form 1096.