Upcoming Form 1099 Changes for 2022
By Andrea C. Leary, CPA
As the 2023 filing season for Form 1099s quickly approaches, we want to provide you with a summary of the minimal changes you can expect as you prepare to file your Form 1099s by the January 31, 2023 due date.
First, here is a quick reminder regarding who is required to file Form 1099s.
Form 1099-NEC: If, as part of your trade or business, you made any of the following payments of $600 or more during the calendar year to an individual or LLC, you are required to file Form 1099-NEC:
- Services performed by someone who is not your employee (including parts and materials)
- Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish
- Payments to attorneys (including law firms or other providers of legal services)
Form 1099-MISC: If, as part of your trade or business, you made any of the payments of $600 or more during the calendar year to an individual or LLC, you are required to file Form 1099-MISC:
- Rents (Box 1)
- Royalties (Box 2)
- Other income (Box 3), including prizes and awards
- Federal income tax withheld (Box 4), including backup withholding
- Fishing boat proceeds (Box 5)
- Medical and health care services (Box 6)
- Substitute payments in lieu of dividends or interest (Box 8)
- Crop insurance proceeds (Box 9)
- Gross proceeds paid to an attorney, for example in a settlement agreement (Box 10, but payments to attorneys for services are reported on Form 1099-NEC)
- Fish purchased for resale (Box 11)
- Section 409A deferrals (Box 12)
Changes for this upcoming filing season:
Form 1099-MISC, Box 13, has changed from reporting Excess Golden Parachute payments in 2021 to being a “Checkbox” to report Foreign Account Tax Compliance Act (FATCA) in 2022. As a result of this change, the original boxes 13-17 have been renumbered to boxes 14-18, accordingly.
There are no changes to the Form 1099-NEC in 2022.
The e-filing threshold also remains unchanged. Companies that are required to file 250 or more information returns are required to do so electronically. Companies filing 249 or less information returns may still do so on paper.
The information contained in this article is for informative purposes only and should not be relied on when making any business, legal, or other decisions. This information may be updated without notice and/or may not contain the most current information that is available related to this topic. Please consult with your advisor to determine how this information applies to your specific facts and circumstances.