2020 1099's MISC & NEC New Requirements

Owned by Loan Thai
Last updated: Nov 30, 2020 by Alex Hatzopoulos-A (Unlicensed)
2 min read

 

https://www.irs.gov/pub/irs-prior/i1099msc–2020.pdf

https://www.irs.gov/pub/irs-pdf/f1099msc.pdf

https://www.irs.gov/pub/irs-pdf/f1099nec.pdf

 

 

 

Mandatory Aeros ERP software update for 2020 1099 MISC & 1099 NEC new requirements .

 

Following are the items included in the update:

 

 

  1. Vendor 1099 Type - Added new Vendor 1099 type NEC.

 

             

 

 

2. Vendor 1099 Box – NEC - Added new configuration setup for NEC boxes 1- 7.

 

              

 

 

3. Vendor 1099 Box – MISC – The following boxes’ descriptions will be updated:

 

  1. M07 – Payer made direct sales of $5000 or more - this box amounts will be moved to NEC Form Box 1.

  2. M09 – Crop Insurance Proceeds

  3. M10 – Gross Proceeds Paid to an Attorney

  4. M11 – Not in used

  5. M12 – Section 409A deferrals

  6. M14 – Nonqualified deferred compensation

  7. M15 – State tax withheld

  8. M15A – No longer in used

  9. M15B – No longer in used

  10. M16 – State/Payer’s state no.

  11. M17 – State income

  12. M18 – No longer in used

 

 

             

 

 

4. Vendor Master Default 1099 Settings – All 1099s vendors' defaulted settings will be updated appropriately accordingly to the new 1099s formats.

 

5. Vendor Vouchers – The amounts on the following vendor 1099 MISC type boxes will be moved/updated for ALL vouchers from 2020-01-01 to the Updated date.

 

                         

 

 

6. After the update is completed, users will enter all data accordingly to the new 2020 1099’s new format.