Atlanta Buckhead Midtown and EVERYWHERE USA - NEW TAX Requirements

Real Estate Broker/Owner with Atlanta Homes ODAT Realty - Love our Great City - Love our Clients! Buckhead - Midtown - Westside

Atlanta Buckhead Midtown and


In Atlanta Buckhead Midtown Westside or any other place in the United States, a TAX REPORTING CHANGE is here now and could effect real estate professionals. There are now three forms which have different usages and will be due to the IRS at different dates.  

Beginning with the 2020 tax year, the IRS will require business taxpayers to report nonemployee compensation on the new Form 1099-NEC instead of on Form 1099-MISC. Businesses will need to use this form if they made payments totaling $600 or more to a nonemployee, such as an independent contractor.  (intuit)
Perhaps real estate professionals will now receive Form 1099-NEC.

Form 1099-MISC
will be used to report miscellaneous compensation such as rents, prizes and awards, medical and healthcare payments, and payments to an attorney or an accountant.
Form 1099-K isn't "new" but it will be used for a new purpose. If a person works in the "gig economy" or as an online business owner, there are significant income-limit reporting changes. Starting with Tax Year 2020, those earning limits will change. Instead of a $20,000 and 200 event threshold, income reporting will be triggered by $600 in earnings!     

​Form 1099-K tracks payments you’ve received through a payment settlement entity, or PSE. That includes tracking payments made via:

  • Credit cards
  • Online payment services like PayPal
  • And even freelancing platforms like Upwork that manage client payments for you.

Form 1099-K shows the value of the transactions the PSE has processed for you in the past year, as well as any expenses paid on your behalf by your clients.


Top image courtesy of clipart.

Comments (4)

Kat Palmiotti
406-270-3667,, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

I did receive a 1099-NEC this year and was wondering why. Now I know!

Enjoy your day!

Jan 29, 2022 04:52 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em:

Did not know there was three versions.  Good to know. thanks

Enjoy the weekend, if you are in the NorthEast, buckle down for a HUGE storm today.  bill

Jan 29, 2022 05:10 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Lynn. For years I have left anything to do with taxes up to my accountant. Thank goodness! Enjoy your day.

Jan 29, 2022 05:11 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Lynn if there is a way to get more money from us the IRS will figure it out.

Jan 29, 2022 04:15 PM