Use this 2020 1099 software to process both W-2s and 1099s with the federal government (IRS / SSA) and state departments of revenue through paper and electronic filing. Populate data manually (entry screens mirror the form being used) or import from different sources such as Excel and QuickBooks. Designed to be used by both business owners and accounting professionals. Forms can be printed to laser / ink-jet printers and exported to PDF digital documents. Corrections, previous year-filing, TIN-matching, SSN masking, data export and quality control tools are also available in the software. Form 1099-NEC (non-employee compensation processing for 2020 and beyond) is also included. If you are looking for 2019 software, please click here .
What's New for Tax Year 2020?
- The biggest change for the 2020 / 2021 season is the new 1099–NEC form (Non-employee Compensation). Beginning with calendar year 2020, Form 1099-NEC replaces Form 1099-MISC for reporting nonemployee compensation (in Box 7). 1099-MISC is still used to report rent, payments to an attorney, prizes, and other income payments. The instructions for Form 1099-NEC are folded into the instructions for Form 1099-MISC.
- Filers may truncate the first five digits of payees’ TAX ID on their paper or electronic copies of Form 1099-NEC; forms filed with the IRS must contain the full TIN, as well as the filer’s full EIN.
- For 2020, the CF/SF program isn’t accepting Form 1099-NEC. You will have to register with the state and you need to ensure the state will accept Form 1099-NEC.
- Many of the boxes on form 1099-MISC have been rearranged and box numbers changed.
- Families First Coronavirus Response Act (FFCRA) requires employers with fewer than 500 employees to provide paid leave for COVID-19 related reasons through the Emergency Paid Sick Leave Act, as well as the Emergency Family and Medical Leave Expansion Act. Employers must report these amounts either on Form W-2, Box 14, or on a separate statement.
- Form 1099-PATR: New boxes were added and existing boxes were renumbered, retitled, and/or repurposed to allow for reporting information to patrons needed for section 199A. See the revised instructions for boxes 2, 5, 6, 7, 8, and 9.
- All information returns filed on paper will be filed with only three Internal Revenue Service Centers: Austin, TX; Kansas City, MO; and Ogden, UT.
- Form 1099-B: the IRS added a checkbox in box 3 to report disposition of an interest in qualified opportunity funds (QOFs).
- To aid employers’ efforts to protect employees from identity theft, new IRS regulations (affective for the 2020 / 2021 season) permit employers to voluntarily truncate employees’ social security numbers (SSNs) on copies of Forms W2, Wage and Tax Statement, that are furnished to employees. Employer may not truncate any identifying number on the Social Security Administration copy A. some states aren’t accepting W-2 copies with truncated SSNs. Visit your state tax department’s website to find out what your state is doing.
- The SSA has released an updated version of Publications EFW2 and EFW2C for the 2020 tax year.
- IRS Issues 2020 Version of Publication 1220 for Electronic Forms (October26, 2020).
- Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments – obsolete beginning tax year 2020.
- Amount code “G” must be used in the B record of form 1099-MISC to report prior year (2019 and before) nonemployee compensation.
- IRS Notice 2020-76 extends due dates for furnishing Forms 1095-B and 1095-C, from January 31, 2021 to March 2, 2021.
- The following states now have legislation regarding Affordable Care Act (ACA) reporting: California, District of Columbia, Massachusetts, New Jersey, Rhode Island and Vermont. Five other states have proposed 1095 reporting legislation: Connecticut, Hawaii, Maryland, Minnesota and Washington.
- FIRE production system will be available January 8, 2021, 12 p.m. ET.
- IRS FIRE test system will be available January 4, 2021 8:00 a.m. ET.
- IRS FIRE Systems (Production and Test) maintenance is every Wednesday and Sunday from 2 a.m. ET to 5 a.m. ET.
- The IRS address for filing information returns electronically is https://fire.irs.gov/. The address to send a test file electronically is https://fire.test.irs.gov/.
- Do not electronically transmit tax year 2020 extension requests before January 10, 2021.