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