Form 1099-MISC and Form 1099-NEC are both information reporting forms used to report income paid to non-employees, contractors, freelancers, and other individuals or entities who provide services to a business.
Before 2020, Form 1099-MISC included reporting for non-employee compensation in Box 7. However, with the introduction of Form 1099-NEC in 2020, Box 7 was removed from Form 1099-MISC, and all reporting of non-employee compensation shifted to the new Form 1099-NEC.
However, there are key differences between the two forms:
| Form 1099-MISC | Form 1099-NEC | |
|---|---|---|
| Purpose | Used to report miscellaneous income, which generally doesn’t include non-employee compensation. | Used to report non-employee compensation paid to individuals who are not your employees, such as independent contractors and freelancers. |
| Examples of income reported | Rent payments, royalty payments, prizes and awards, attorney fees, healthcare payments, and certain crop insurance proceeds. | Payments for services, fees, commissions, prizes and awards for services, and other income earned from self-employment. |
| Who uses it | Businesses and individuals | Businesses and individuals who pay for non-employee services |
| Filing deadline | March 31st (electronic), February 28th (paper) | January 31st (both electronic and paper) |
| Limit required for filing | $10 for royalties or broker payments$600 for rent and other payments | $600 or more for the independent contractors |
In summary, while both Form 1099-MISC and Form 1099-NEC are used to report income paid to non-employees, Form 1099-MISC encompasses various types of miscellaneous income, whereas Form 1099-NEC specifically focuses on reporting non-employee compensation.
What is the difference between Form 1099-MISC and Form 1099-NEC?
Form 1099-MISC and Form 1099-NEC are both information reporting forms used to report income paid to non-employees, contractors, freelancers, and other individuals or entities who provide services to a business.
Before 2020, Form 1099-MISC included reporting for non-employee compensation in Box 7. However, with the introduction of Form 1099-NEC in 2020, Box 7 was removed from Form 1099-MISC, and all reporting of non-employee compensation shifted to the new Form 1099-NEC.
However, there are key differences between the two forms:
Year
Due
Form 1099-MISC
Form 1099-NEC
Purpose
Used to report miscellaneous income, which generally doesn’t include non-employee compensation.
Used to report non-employee compensation paid to individuals who are not your employees, such as independent contractors and freelancers.
Examples of income reported
Rent payments, royalty payments, prizes and awards, attorney fees, healthcare payments, and certain crop insurance proceeds.
Payments for services, fees, commissions, prizes and awards for services, and other income earned from self-employment.
Who uses it
Businesses and individuals
Businesses and individuals who pay for non-employee services
Filing deadline
March 31st (electronic), February 28th (paper)
January 31st (both electronic and paper)
Limit required for filing
$10 for royalties or broker payments$600 for rent and other payments
$600 or more for the independent contractors
In summary, while both Form 1099-MISC and Form 1099-NEC are used to report income paid to non-employees, Form 1099-MISC encompasses various types of miscellaneous income, whereas Form 1099-NEC specifically focuses on reporting non-employee compensation.
Last modified: December 23, 2025
