While the regulations are far more extensive than this quick summary, you are required to provide a “1099” to anyone who performs services for you that is paid more than $600 a year, people to whom you pay rent, doctors, lawyers, and more. All of this has been reported on a 1099-Misc for years. Beginning for the 2020 tax year, the IRS has decided to break the current 1099-Misc into two forms. The one you’ll use for subcontractors is 1099-NEC (Non-Employee Compensation). A pdf of the instructions for both the 1099-NEC and 1099-Misc is here. The 1099-NEC has to be filed, and your sub must have a copy by 1/31/2021.
You can find the new 1099-Misc here. The recipient must have forms by 1/31/2021. Copy A of this form must be filed with the IRS by February 28, 2021, if you file on paper, or by March 31, 2021, if you file electronically.
If you haven’t gotten updated W-9s from your contractors, you can download a PDF here.
