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1099-MISC or 1099-NEC: which one?

Use 1099-NEC for payments to contractors for their work. Use 1099-MISC for rents, royalties, prizes and other income.

  • 1099-NEC (nonemployee compensation): fees, commissions and other pay to a contractor or freelancer for services in the course of your business. Make one with the 1099-NEC builder.
  • 1099-MISC: rents (box 1), royalties (box 2), other income such as prizes (box 3), medical and health care payments (box 6), gross proceeds paid to an attorney (box 10) and the rest of the boxes. Make one with the 1099 builder.

Before you pay a contractor, ask them for a W-9 so you have their correct name and taxpayer ID for the 1099.

The IRS reporting thresholds and deadlines change from time to time. Check the current IRS instructions for Forms 1099-MISC and 1099-NEC before you file.

Still stuck? Email support@paystub.biz or see the FAQ.