W2 Mate software

1099-NEC vs. 1099-MISC: What are the similarities and differences?

Since form 1099-NEC was introduced by the IRS for 2020, we have been receiving a lot of questions from our customers about the similarities and differences between form 1099-NEC and form 1099-MISC. This article compares the two forms side-by-side, including what to report, submission deadline, mailing address and what software to use for filing.

Comparison Criteria Form 1099-NEC Form 1099-MISC
What to report Generally, you must report payments to independent contractors on Form 1099-NEC in Box 1. Please remember that before tax year 2020, none-employee compensation was being reported on box 7 of form 1099-MISC. Royalties (box 2), rents (box 1), prizes (box 3), other income payments (box 3), fishing boat proceeds (box 5), medical payments (box 6), crop insurance proceeds (box 9) and payments to an attorney (box 10).

Reminder: You no longer report payments to none-employees on form 1099-MISC.
Deadline to send form to recipient Send form 1099-NEC to recipient by February 1, 2021. Send form 1099-MISC to recipient by February 1, 2021.
Deadline to send form to IRS on paper File Copy A of form 1099-NEC with the IRS by February 1, 2021, if you file on paper. File Copy A of form 1099-MISC with the IRS by March 1, 2021, if you file on paper.
Deadline to send form to IRS electronically File Copy A of form 1099-NEC with the IRS by February 1, 2021, if you file electronically (same as paper deadline). File Copy A of form 1099-MISC with the IRS by March 31, 2021, if you file electronically.
Combined Federal State / Filing Support. The CF/SF Program forwards original and corrected information returns filed electronically through the Filing Information Returns Electronically (FIRE) System to participating states free of charge for approved filers, eliminating separate reporting to the participating states. 1099-NEC is not part of the CF/SF program and the IRS will not forward the forms filed with the IRS to the state. Filers will need to file directly with their states. 1099-MISC is part of the CF/SF program and the IRS will forward the forms filed with the IRS to the state.
Applicable Years Use form 1099-NEC for tax year 2020 and beyond to report none-employee compensation. Use form 1099-MISC for tax year 2019 and before to report none-employee compensation.

For payments other than none-employee compensation such as rents, use 1099-MISC for any year (2020, before 2020, beyond 2020).
Mailing Address for businesses in Alabama, Arizona, Arkansas, Delaware, Florida, Georgia, Kentucky, Maine, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Texas, Vermont and Virginia Internal Revenue Service Austin Submission Processing Center P.O. Box 149213 Austin, TX 78741 The mailing address is the same as 1099-NEC
Mailing Address for businesses in Alaska, Colorado, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Wisconsin and Wyoming Internal Revenue Service Center P.O. Box 219256 Kansas City, MO 64121-9256 The mailing address is the same as 1099-NEC
Mailing Address for businesses in California, Connecticut, District of Columbia, Louisiana, Maryland, Pennsylvania, Rhode Island and West Virginia Department of the Treasury Internal Revenue Service Center Ogden, UT 84201 The mailing address is the same as 1099-NEC
What software to use for 2020 and beyond Use W2 Mate 2020 and above to print / E-File 1099-NEC tax forms. Use W2 Mate 2020 and above to print / E-File 1099-MISC tax forms.
What software to use for 2019 and before N/A Use W2 Mate 2019 and before to print / E-File older 1099-MISC tax forms.
Boxes that get included in form 1096 Box 5 (Total amount reported with this Form 1096) 1099-NEC box 1 1099-MISC boxes 1, 2, 3, 5, 6, 8, 9,10, and 13
Extension to file Use form 8809. Can apply in very rare cases, such as the filer suffered a catastrophic event. Use form 8809. Easier than 1099-NEC.
E-File threshold 100 returns. 100 returns
QuickBooks Support W2 Mate can import vendors along with the money amounts to populate 1099-NEC forms. Please remember that QuickBooks 2017,2016 and before will not support 1099-NEC forms, so you will need software like W2 Mate to prepare your forms. W2 Mate can import recipients along with the money amounts to populate 1099-MISC forms.
Sample Excel Spreadsheet for Import 1099-NEC Sample Spreadsheet 1099-MISC Sample Spreadsheet
Sample Form Populated 1099-NEC form Populated 1099-MISC form
Can it be sent to recipients by email? Yes, you can email 1099-NEC forms as long as you have the recipient’s consent. You can also mask the recipient tax ID on the form. You will need W2 Mate Option #6 (Create PDF W2's and 1099's) in addition to W2 Mate to create PDF 1099-NEC forms that you can email to the contractor. Yes, you can email 1099-MISC forms (same rules as 1099-NEC).
Time needed to complete and file form (will vary depending on individual circumstances) 5 minutes. 18 minutes.

W2 Mate® W2 / 1099 Compliance Software

W2 Mate® is everything filers need to process W2s and 1099s in-house using their computer machines (not somewhere in the cloud). W2 Mate is trusted by thousands of great U.S companies small and large, accounting firms, banks, universities, hospitals, local governments and many more. In addition to 1099-NEC and 1099-MISC, W2 Mate supports forms W-2, 1099-INT, 1099-DIV, 1099-R, W-3, 1096, 1099-S, 1098-T, 1098, 1099-A, 1099-B, 1099-C, 1099-K, 1099-PATR and 1099-OID.


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