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Day 13: What to Know About 1099-NEC & Contractors: A Simple Guide for Businesses and Freelancers

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🧾 Day 13: What to Know About 1099-NEC & Contractors: A Simple Guide for Businesses and Freelancers In today’s flexible work landscape, hiring independent contractors can be a smart move—offering agility without the long-term commitments of traditional employment. But with this freedom comes responsibility, especially when it’s time to tackle tax forms like the 1099-NEC . Let’s break down what you need to know about using this form and working with contractors, without the tax jargon overload. 📌 What Is the 1099-NEC? The 1099-NEC (Nonemployee Compensation) is an IRS form used to report payments made to nonemployees for services. It replaced the old use of Form 1099-MISC for service payments starting in 2020 . You’ll need to issue this form if you paid: $600 or more in the calendar year To an individual or business not classified as an employee For services (not products or rent) Who is not incorporated—i.e., a sole proprietor or LLC taxed as such It goes to both t...
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What the “Big Beautiful Bill” Means for Your Taxes

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What the “Big Beautiful Bill” Means for Your Taxes President Trump’s newly signed “Big Beautiful Bill” is more than a political headline—it’s a sweeping tax overhaul that reshapes how Americans earn, save, and file. Whether you’re a W-2 employee, business owner, or retiree, here’s what you need to know about the tax-wise changes coming your way. 📉 1. Permanent Extension of 2017 Tax Cuts The bill locks in the lower tax rates from the 2017 Tax Cuts and Jobs Act (TCJA), which were previously set to expire in 2025. That means: Lower individual income tax rates remain in place Higher standard deductions are now permanent Expanded child tax credit continues beyond 2025 This move is expected to save high-income households tens of thousands over time, while middle-income families see modest relief. 💰 2. No Tax on Tips and Overtime (With Limits) One of the most talked-about provisions: tips and overtime pay are now partially tax-exempt . Up to $25,000 in tips and $12,500 in o...
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