Business Strategy

Strategic planning is a process. It helps you to document and establish a direction for your small business. Strategic planning allows you to define your business's mission, vision, and values. A well-formulated business strategy can play an essential role in your company's growth and eventual success as it tells you and your employees how to respond to challenges and opportunities.
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The New 2021 1099

Business Strategy

The 1099 Form is what you need to fill out, file, and give to a person who did work for you but who is not a regular employee. Independent contractors and freelancers may require a 1099 MISC form or a 1099 NEC form. But, there are other 1099 forms. And the new 2021 1099 form will have changes from 2020.

1099 A Form

The 1099 A form is for reporting canceled debt, which the IRS considers to be income. You will get one of these from your mortgage lender if they canceled all or part of your mortgage. This also occurs if you had a short sale of your home.

1099 B Form

This form covers income from selling various types of securities and from bartering on bartering exchanges. Such income is taxable.

1099 C Form

This form is for forgiven debt from a credit card issuer. You may have settled your credit card debt for less than what you had owed. Unfortunately, the credit card issuer will generate this form and the amount of forgiven debt is taxable.

1099 CAP Form

This form is used to report income in the form of stock, cash or property that came about because a corporation in which you held shares was acquired or had a huge change in its capital structure. This realized income is taxable.

1099 DIV Form

This is the form for reporting dividend income throughout the year. It does not include credit union dividends which are reportable as interest on the 1099 INT Form.

1099 G Form

This is the form for reporting tax refunds, credits, or offsets from your previous federal, state, or local government tax returns. It also is for reporting unemployment benefits during the year.

1099 INT Form

Interest from bank accounts, brokerages, or other financial institutions is reportable as income. If you earned more than $10 in interest during the year from any such institution you will receive one of these.

1099 NEC Form

This form should now be used instead of 1099 MISC for reporting independent contractor payments.

The New 2021 1099 Form Changes

There are several changes in the 1099 forms for 2021 over 2020.

1099 MISC Form

First of all the IRS changed the title of this form from “Miscellaneous Income” to “Miscellaneous Information.”

Other changes include Box 11 which now includes any reporting under section 6050R to include cash payments for buying fish for resale from a person or corporation who catches the fish. Box 11 will have instructions for this.

1099 NEC Form

Box 1 will no longer be used to report items under section 6050 in regard to buying in order to resell them.

Box 2 can be used for reporting sales of $5,000 or more of consumer products for resale when done on a deposit-commission basis, a buy-sell basis, or any other basis. This information can also be reported on 1099 MISC. The box will include instructions.

The form has also been shortened so that three forms can fit on a page.

For help sorting out the changes to the new 1099 form for 2021, contact us at Exigo Business Solutions in the Kansas City area.

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Small Business

Running a small business can be very rewarding and profitable. And, running a small business can be difficult as you deal with all of the details. In our Small Business section our aim is to help you put things in perspective, learn to do the most important things first, and find the hidden costs that sap your profits and your strength. Small business sales can be strong but your small business profits may not be. Read our articles in this section for help in avoiding small business pitfalls and realizing growing profits.
Profit First helps you experience profit.

Business Strategy

Strategic planning is a process. It helps you to document and establish a direction for your small business. Strategic planning allows you to define your business's mission, vision, and values. A well-formulated business strategy can play an essential role in your company's growth and eventual success as it tells you and your employees how to respond to challenges and opportunities.
Ronald B. Allen
CEO, Profit First Professional, Fix This Next Founding Advisor
Principle of an accounting firm that’s committed to educating business owners on their financial health, providing a trans-formative strategy and helping them experience their profit!