This filing season will look a bit different from years past, especially when it comes to 1099 2020 forms. As a result of unclear filing deadlines and an influx of Americans working as independent contractors, the 1099 MISC form 2020 may not be the most important of the year. While it will take a few months to see which 2020 1099 form will be most used, we think we can make some pretty good guesses.
That said, when it comes to finding an accounting software, you’ll want to make sure you’re covered for both the most- and least-common forms out there. Businesses have to handle several different types of 1099 forms these days, and you need a tool that changes with both your business and the tax code. That’s exactly what you’ll get from our W-2/1099 Forms Filer. We provide support for the common 1099 2020 forms, but also the less-common options. Your accounting can only be as efficient as your software tool is adaptable. If you’re looking for a new solution, Advanced Micro Solutions can help.
The Most Common 1099 2020 Forms
Some types of 1099 forms are more common than others. Still, depending on the industry in which you work, you may handle one, a handful, or the majority of those available. If you’re new to business accounting or just curious about the forms these businesses use, the following list should give you a good idea of which will be the most popular in 2020.
- 1099-NEC: This form, retired in the 1980’s and reintroduced for the 2020 tax season, is likely to be one of the most-used forms going forward. The United States is seeing a massive surge in folks working as independent contractors. This means fewer businesses are hiring employees, instead choosing to outsource this work to contractors. The 1099-NEC is designed to report those earnings.
- 1099-MISC: While the 1099-NEC will likely steal some of the 1099-MISC’s thunder, this is still likely to be one of the most common 1099 2020 forms. This is due to its variety of uses – from reporting rental earnings to payments made to attorneys and fishing boat proceeds. Still, we’ll be curious to see how many fewer 1099-MISC forms will be filed in 2020, as it might be a data point in interpreting big changes in the U.S. workforce.
- 1099-S: Despite the novel coronavirus pandemic, the real estate market soared in 2020. As a result, we expect the 1099-S to remain one of the most popular 1099 forms. This form is used to document and report real estate transactions. If you do accounting work for a brokerage firm, you’re likely seeing more of these than in years past.
While we think these three types of 1099 forms will be the most popular in 2020, there are a variety of other candidates: the 1099-INT, 1099-R, 1099-C, and 1099-DIV. Luckily, software tools from AMS support all of these form variations. With us, you’ll be prepared for whatever changes 2021 has in store.
Choose a Business Accounting Software that Works
While these 1099 forms are very popular, there are less common and more specific 1099 forms some businesses will need to handle. Whether you need to file a 1099-MISC or 1099-Q, we have everything you need.