Changes to W2 &1099 Forms for 2021

1099-NEC FORMAT CHANGE

1099NEC forms are a 3up format for 2021. Use these forms to report non-employee compensation.

E-Filing Requirements MAY Change

The IRS is considering a change to the e-filing threshold for payers. It may lower to 100+ forms. Stay tuned for updates as they are released…

1099 Form Due Dates for 2021. 

The 1099NEC forms must be mailed to recipients and e-filed or mailed to the IRS on or before January 31, 2022.

For other 1099s, file by February 28, 2022, if you file on paper, or by March 31, 2022, if you file electronically.

The due dates for furnishing payee statements remain the same.

Possible New E-Filing Requirements

The IRS is considering changing the e-filing threshold to 100+ total 1099 & W2 forms per payer. They will make this decision by November. Stay tuned to Discount Tax Forms for details…

DiscountEfile.com helps you get it all done, easily!

 

1099-NEC Forms for Nonemployee Compensation

The 1099-NEC was a new form in 2020 for business taxpayers to report payments of nonemployee compensation.

Starting with tax year 2020, taxpayers must complete this form to report any payment of $600 or more to a payee.

For the 2021 Tax Year, it has changed to a 3up format (it was 2up). New forms and envelopes will be required.

It was streamlined in format to include a few strategic changes, such as the addition of Box 2 to avoid the need to file both a 1099-MISC and 1099-NEC. The IRS also deleted the FATCA filing requirement box and two large red boxes.

As a result of the form updates, the 2021 form was resized to accommodate 3 forms per page and save paper.

Other 1099-NEC Form Changes for 2021

Form 1099-NEC, box 1.

Box 1 will not be used for reporting under section 6050R, regarding cash payments for the purchase of fish for resale purposes.

Form 1099-NEC, box 2.

Payers may use either box 2 on Form 1099-NEC or box 7 on Form 1099-MISC to report any sales totaling $5,000 or more of consumer products for resale, on buy-sell, deposit-commission, or any other basis. For further information, see the instructions later for box 2 (Form 1099-NEC) or box 7 (Form 1099-MISC).

Generally, this form is due by January 31st – to be mailed to the recipient and mailed or e-filed with the IRS.

There is no automatic extension for this form but may be available under certain hardships.

Nonemployee compensation may be subject to backup withholding if a payee has not provided a taxpayer identification number to the payer or the IRS notifies the payer that the TIN provided was incorrect.

More information about this form can be found here: Form 1099-NEC, Nonemployee Compensation

1099-MISC Form Changes

Form 1099-MISC title change.
The title for Form 1099-MISC has been changed from Miscellaneous Income to Miscellaneous Information.

Form 1099-MISC, box 11.
Box 11 includes any reporting under section 6050R, regarding cash payments for the purchase of fish for resale purposes, from an individual or corporation who is engaged in catching fish. For further information, see the instructions for box 11, later.

1099 Rules that can make or break you
Here is a great article from Entrepreneur Magazine about who is required to file 1099 forms and why, the exceptions and how you can be proactive about 1099s to protect your business from large penalties. 

Read the Article

Due Date for W2 Copy A

January 31, 2022 is the deadline for W-2 Forms for tax year 2021.

This includes: W-2, W-2AS, W-2CM, W-2GU, W-2VI, W-3 and W-3SS with the SSA. The due date is now January 31 whether you file using paper forms or electronically.

You no longer get more time to e-file or print and mail copies to the SSA.

Possible New E-Filing Requirements

The IRS is considering changing the e-filing threshold to 100+ total 1099 & W2 forms per payer. They will make this decision by November. Stay tuned to Discount Tax Forms for details…

DiscountEfile.com helps you get it all done, easily!

Good News!

There were no major changes to W2 forms for 2021.