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1099-NEC vs 1099-MISC

Confused about which form to file? You're not alone. Here is a clear breakdown of when to use each form based on current federal rules.

$600Threshold
Jan 31NEC Deadline
documents illustration
Form 1099-NEC
Non-Employee Compensation
Payments made to independent contractors for services.

When to use:

  • Services performed by non-employees
  • Independent contractor payments
  • Freelancer and consultant fees
  • Professional service payments

Threshold: Required if payments total $600+ for the year.

Form 1099-MISC
Miscellaneous Income
Other types of income payments, not for services.

When to use:

  • Rent or lease payments
  • Royalties (at least $10)
  • Prizes and awards
  • Other specific income types

Threshold: Varies by payment type (typically $600+).

Quick Decision Guide

Is it for services?

NEC

Rent or Royalties?

MISC

Less than $600?

NONE

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