Form 1099-MISC VS Form 1099-NEC 2022
If you are a gig worker or independent contractor, you have probably noticed that you received a different form showing your compensation.
Previously, you would receive Form 1099-MISC to show your gig income or compensation.
For 2021 income, you will now receive Form 1099-NEC. So what’s the difference?
Form 1099-MISC is the same as the 1099-NEC form. It is just a different version that businesses are now required to use to show payments made to contractors.
Previously, on your 1099-MISC form, your income was reported on line 1. That was the amount that you would list on your tax return. That is still the same on 1099-NEC.
Also, don’t forget to pay attention to line 4, which is where your taxes are withheld.
It is rare that something will be listed there, but it is good to be aware. If you did have taxes withheld, you want to be able to get the credit for those taxes that were paid.
The same goes for line 5, which is any taxes paid to the state government.
So, long story short, the 1099-NEC is the same as the 1099-MISC; it is just a new version for 2021.
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