1099-MISC and 1099-NEC

For tax year 2021, the IRS has redesigned Form 1099-NEC to three forms per page rather than two forms as in 2020. You will now see three sections for 1099-NEC recipients per form but you may need to make adjustments based on the pre-printed form you are using.

Check System/Customize Reports and Forms and then Preview the form in Payables/Print/1099-NEC to make adjustments and print on blank paper before printing on your actual forms. Hold the printout on blank paper up against your pre-printed form to be sure that all data lines up correctly. If alignment issues are apparent, you can make changes directly in the Preview form and print again. DO NOT SAVE YOUR CHANGES. Just print and close when you are done.

If you have trouble making changes to your form, please send us a Problem Report from your C21 menu bar in Help/Submit Problem Report. In the description box, please tell us the name of the 1099-NEC form provider. We will also need your company data which can be sent by going to Help/Send Company Data to 21st Century Accounting.

1099-MISC - Changes have been made to the 1099 - MISC. The following table shows how the changes correspond to Box selections for 2020.

2019	2020	Name	Supported?
Box 1	Box 1	Rents	Yes
Box 2	Box 2	Royalties	Yes
Box 3	Box 3	Other Income	Yes
Box 4	Box 4	Federal income tax withheld	No
Box 5	Box 5	Fishing boat proceeds	Yes
Box 6	Box 6	Medical and health care payments	Yes
Box 7		Nonemployee Compensation	See 1099-NEC
Box 8	Box 8	Substitute payments in lieu...	No
Box 9	Box 7	Payer made directs sales of $5000 ...	No
Box 10	Box 9	Crop insurance proceeds	Yes
Box 11	Box 11	Blank
Box 12	Box 12	Section 409A deferrals	Yes
Box 13	Box 13	Excess golden parachute payments...	Yes
Box 14	Box 10	Gross proceeds paid to an attorney	Yes
Box 15a	Blank	Blank
Box 15b	Box 14	Nonqualified deferred compensation	Yes