For this purpose, a customer includes an individual, trust, estate, partnership, association, company, or corporation. Substitute payment means a payment in lieu of (a) a dividend, or (b) tax-exempt interest to the extent that interest (including original issue discount) has accrued while the securities were on loan. Substitute Payments in lieu of dividends or interest (Box 8)Įnter aggregate payments of at least $10 of substitute payments received by a broker for a customer in lieu of dividends or tax-exempt interest as a result of a loan of a customer's securities. It may be in the form of a letter showing this information along with commissions, prizes, awards, etc. The report you must give to the recipient for these direct sales need not be made on the official form. Do not enter a dollar amount in this box. You are not required to report payments to pharmacies for prescription drugs For more specific information on what qualifies, please see page 6 of the Instructions for Forms 1099-MISC and 1099-NEC Direct Sales (Box 7)Įnter an “X” in the checkbox for sales by you of $5,000 or more of consumer products to a person on a buy-sell, deposit-commission, or other commission basis for resale (by the buyer or any other person) anywhere other than in a permanent retail establishment.
In these cases, the entire payment is subject to information reporting. Payments to persons providing health care services often include charges for injections, drugs, dentures, and similar items. If payment is made to a corporation, list the corporation as the recipient rather than the individual providing the services. Include payments made by medical and health care insurers under health, accident, and sickness insurance programs.
Medical Payments (Box 6)Įnter payments of $600 or more made in the course of your trade or business to each physician or other vendor or provider of medical or health care services. For more specific information on what qualifies, please see page 6 of the Instructions for Forms 1099-MISC and 1099-NEC. A fishing boat has normally fewer than 10 crew members if the average size of the operating crew was fewer than 10 on trips during the preceding 4 calendar quarters. However, if you have other payment types, then you'll need to file both 1099-NEC and 1099-MISC forms.Įnter the individual's share of all proceeds from the sale of a catch or the FMV of a distribution in kind to each crew member of fishing boats with normally fewer than 10 crew members. This is the most common situation that business traditionally reporting Non-employee compensation will encounter and the only box most businesses will need to select for payment types. If in the past you filed 1099-MISC using only Box 7 to report Non-employee Compensation you will most likely now select Box 1 - Non-employee Compensation on the new 1099-NEC form. QuickBooks 2019 Maintenance Release 14 _(R14)īecause the IRS has separated non-employee compensation onto the new 1099-NEC for tax year 2020, and they revised Form 1099-MISC so as to rearrange several box numbers for reporting income, you not only need to have the new forms in your QuickBooks but you will need to adjust how you use the forms.įor the latest information about developments related to Forms 1099-MISC and 1099-NEC and their instructions, such as legislation enacted after they were published, go to IRS.gov/Form1099MISC or IRS.gov/Form1099NEC IRS Form 1099-NEC (2020) QuickBooks 2020 Maintenance Release 10 (R10) QuickBooks 2021 Maintenance Release 4 (R4) You can find out more about the appropriate QuickBooks Release updates (with the necessary 1099 changes) at these Insightful Accountant articles:
QUICKBOOKS ENTERPRISE 2019 MAINTENANCE RELEASE UPDATE
The IRS also revised Form 1099-MISC and rearranged several box numbers for reporting income on that form.Īs a result, you must update QuickBooks 2019 (or newer… QuickBooks 2020 or QuickBooks 2021) versions (Pro, Premier or Enterprise) to the most recent release in order to have the necessary program changes to accommodate both 1099-MISC and 1099-NEC forms. The IRS has separated Non-employee compensation onto a new form called the 1099-NEC for tax year 2020.
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