In recent years, the IRS has fine-tuned the rules surrounding Form 1099, and 2024 is no exception. If you’re handling non-employee compensation, you’ll need to stay updated. The IRS continues to use Form 1099-NEC for reporting non-employee compensation, a change first made in 2020. Meanwhile, Form 1099-MISC has also seen its share of updates that you shouldn’t ignore.
What’s New for 2024?
The IRS has made some important tweaks to Form 1099-MISC for the 2024 tax year. One key change is that Box 13 is now dedicated to the Foreign Account Tax Compliance Act (FATCA) filing requirement. As a result, what were originally Boxes 13-17 have been renumbered to Boxes 14-18.
Here’s a quick rundown:
- ✅ Box 13: Use this to indicate FATCA filing requirements.
- ✅ Box 14: Report excess golden parachute payments.
- ✅ Box 15: Include payments under NQDC plans.
- ✅ Box 16: Report state-withheld taxes.
- ✅ Box 17: Include the payer’s state number.
- ✅ Box 18: Report state income.
❓ What’s the Deadline?
To avoid penalties, ensure you’re meeting the 1099 deadlines. Payers must issue Form 1099-MISC to recipients by January 31st. If you’re filing by paper, the IRS deadline is February 28th, while e-filing gives you until March 31st.
❓ Why e-File?
The IRS loves e-filing—and for good reason. It’s faster, more accurate, and lets you keep track of everything without dealing with a mountain of paperwork.
Don't let the IRS catch you off guard!
Navigating these IRS 1099 rules can be tricky, but you don’t have to do it alone. Let us help you with your tax preparation this year. Ready to make sure everything’s in order? Give us a call, and let’s tackle those 1099s together.