twocents.lifehacker.com: If you made money from freelancing or gig economy work in 2020, you will receive a new tax form by February 1, 2021—Form 1099-NEC. This replaces Form 1099-MISC, which companies have to send when you earn $600 or more. Although there are still limited details about Form 1099-NEC, you can find the latest version (currently a draft) and future filing instructions here.
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God what I would have given to understand 1099-MISC forms earlier. Up until the first one I had received, I held only W2 jobs and didn't think much about the difference until tax season rolled around. That's when I realized the error of my ways, albeit a bit too late! There is nothing wrong with being a 1099 employee, and sometimes it can even be in your best interest depending on your financial situation. For example, I am a 1099 for a company that I occasionally do work for, and that status not gives me flexibility, it allows me to add tax write-offs that I otherwise wouldn't be able to use. Another instance of this is health insurance, which depending on your situation you may or may not need from your employer. With all that being said, I would love it if there were more detail in this article (or in a class for that matter) that went over how to properly file this sort of paperwork because there are so many people in our industry that rely on independent contract or freelance work for their income.
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