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Changes To Form 1099-MISC: All You Need To Know

The IRS has announced that it plans to make some changes to Form 1099-MISC. After two years, the IRS has come up with yet another update for Form 1099-MISC. So what is it? Let’s talk about it.

Form 1099-MISC Changes 2022-23
Form 1099-MISC Changes 2022-23

Overview Of Form 1099-MISC

Form 1099-MISC, commonly used for reporting miscellaneous information, reports payments such as rent, cash prizes, awards, healthcare payments, and more. 

The primary purpose of issuing a 1099-MISC is to report certain payments made to contractors. Form 1099-MISC reports fees paid to an attorney, any direct sales of consumer products totaling more than $5,000 for resale, and more. 

Until 2019, Box-7 of Form 1099-MISC was used for reporting compensations made to nonemployees. 

However, at the beginning of 2020, IRS restored Form 1099-NEC, which required payers to report non-employee compensations amounting to $600 or more, made in a tax year, on the newly restored form 1099-NEC.

Box 7 was replaced with Form 1099-NEC, and now, Box 7 on the 1099-MISC form is used for reporting direct sales of $5000 or more for resale.

What Are The Changes To 1099-MISC For The Tax Year 2022-23?

Form 1099-MISC Box 13

Unlike the drastic changes that were made to Form 1099-MISC in 2020, the current changes to Form 1099-MISC for the 2022-23 tax year are much more subtle. 

Let’s take a look at them.

Changes To Box 13

Before 2022, Box 13 was used for reporting excess golden parachute payments, and now it denotes the Foreign Account Tax Compliance Act (FATCA) filing requirement. 

Note: The FATCA filing requirement has always been a part of Form 1099-MISC. However, it now has a designated space within the form in Box 13. 

Changes To Box 14

Box 14 was previously used for reporting nonqualified deferred compensations, but now it is used for reporting excess golden parachute payments.

Changes To Box 15

 Previously, Box 15 reported the state tax withheld, but now it reports non-qualified deferred compensation information.

Changes To Box 16

Box 16 was used for reporting the payer’s state number, but with the new update, it’s used for reporting the state-withheld taxes. 

Changes To Box 17

Box 17 was previously used to report the state income, and now it is used to report the state/payer’s state number.

Form 1099-MISC filing deadline 

Here are the 1099-MISC deadlines for the 2023 tax year based on the deadlines issued by the IRS for the 2022-23 tax year.

Filing MethodDeadlines 
Recipient Copy (No Data in Box 8 or 10)31 January 2023
Recipient Copy (With Data in Box 8 or 10)15 February 2023
Paper Filing 28 February 2023
E-Filing31 March 2023

Know The Requirements For Form 1099-MISC

  • Payers must report every payment over $600 in rent, prizes and awards, medical and healthcare payments, cash payments, payments made to attorneys, and more on Form 1099-MISC
  • Additionally, use Form 1099-MISC to report direct sales of at least $5,000 of consumer products made to a buyer for resale anywhere other than permanent established retail. 

How Tax1099 Can Help 

Tax1099 is an IRS-authorized eFile provider. We can help businesses e-file Form 1099-MISC

  • With our 256-bit bank-grade security and encryption standards, businesses can securely file their 1099-MISC Form.
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  • Tax1099 integrates with popular accounting software applications like Xero, QuickBooks, and more. This way businesses can automatically import information from other platforms to Tax1099 and e-file 1099s in just a few clicks.
  • With our User Authority Management, you can control which employees can access your account and what actions they can take.
  • Track your forms to see if the IRS has accepted or rejected them.
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And do much more with Tax1099. 

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