1099-NEC vs 1099-MISC
Not sure which form to use? Here's a clear breakdown of when to use each form.
Form 1099-NEC
Use this form for payments made to independent contractors for services.
When to use:
- Payments for services performed by non-employees
- Independent contractor payments
- Freelancer payments
- Consultant fees
Threshold:
Required if payments total $600 or more for the year
Form 1099-MISC
Use this form for other types of income payments, not for services.
When to use:
- Rent or lease payments
- Royalties
- Prizes or awards
- Other income (not services)
Threshold:
Varies by payment type (typically $600 or more)
Quick Decision Guide
Ask yourself:
- Is this payment for services or work performed? → Use 1099-NEC
- Is this payment for rent, royalties, or prizes? → Use 1099-MISC
- Is the total payment less than $600? → No form needed