Form 1099-NEC vs. Form 1099-MISC

Know the difference between 1099-NEC and 1099-MISC and eFile them in minutes.

Overview

The Difference: Form 1099-NEC vs Form 1099-MISC

Form 1099-NEC and 1099-MISC are frequently used by both businesses and individuals. However, they serve very different purposes and have different reporting requirements.

Form 1099-NEC is used to report non-employee compensation of $600 or more paid to independent contractors, freelancers, and sole proprietors. Whereas Form 1099-MISC is used to report miscellaneous income such as rents, prizes, awards, medical payments, and more.

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Specifications Form 1099-MISC Form 1099-NEC
Form Description Miscellaneous Information Nonemployee Compensation
Purpose Of Form Used for reporting payments made to attorneys, rents, royalty, cash payments for fish, and other miscellaneous payments Used for reporting non-employee compensations and payments made to independent contractors in a tax year.
Minimum Reportable Amount $10 for royalties, broker payments in lieu of dividends, or tax-exempt interest. $600 for other miscellaneous payments $600
Filing Requirements File Form 1099-MISC for each merchant or payee to whom you’ve paid at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest. Also file Form 1099-MISC if you’ve paid at least $600 as rent, cash payments for fish, medical and healthcare payments, and more File Form 1099-NEC for each independent contractor or payee to whom you’ve paid at least $600 or more as nonemployee compensations.
Payee Payees in the 1099-MISC context include landlords, healthcare facilities that accept payments, fish sellers, brokers, and others. Payees in the 1099-NEC context include freelancers, self-employed individuals, small or micro businesses, online businesses, entrepreneurs, gig workers, and others.
Payer The business or the person paying the payee becomes the payer. The business or the person paying the payee becomes the payer. Example: Gig companies like Fiverr.
(Combined Federal/State Filing Program) CFSF Status Yes Yes
History Previously included non-employee compensations as a part of the reporting regime. Nonemployee compensations were later separated after Form 1099-NEC was introduced. Previously known as Box 7 of Form 1099-MISC. Now, Form 1099-NEC is an independent 1099 information return.
Exceptions To Filing Don’t file Form 1099-MISC if reportable payments do not meet the minimum reportable amount limits specified above. Don’t file Form 1099-NEC if you did not pay a total of at least $600 as non-employee compensations to your payee(s).
Late Filing Penalty $50 to $280per 1099 form
Maximum penalty: $1,130,500 per year + interest
$50 to $280per 1099 form
Maximum penalty: $1,130,500 per year + interest
Reporting Payee TIN & Legal Name Mandatory Mandatory
Last Date For Filing Recipient Copy: If no data is reported in Box 8 or 10, January 31.
With data in Box 8 or 10, February 15. IRS eFile:March 31IRS Paper File:February 28
January 31 (for both paper and electronic filing)

How to File 1099 Forms?

Step-by-step Instructions for Filing 1099 NEC/MISC

Step 1

Select Your 1099 Form

Once you’ve clicked Create Form, choose Form 1099-NEC/MISC from the list of available forms.

Step 2

Add Payer

Click the Add Payer button to enter the payer information.

Step 2

Payer Information

Select the type of payer (e.g., individual, business, etc.).Enter the payer’s Name, TIN & address info

Step 2

Add Recipient

Click the Add Recipient button to begin entering the recipient’s information.

Step 2

Recipient Information

Choose the recipient type (e.g., individual, business etc.).
Enter the recipient’s name, SSN/EIN and address.

Step 2

Add Form Details

For Form 1099-NEC : Add NEC & Federal Income Tax Withheld details.

Step 2

For Form 1099-MISC

Add Rent/Royalties & Other Income details

Step 2

Select the Necessary Services

Choose the necessary services for your 1099 filing, such as USPS, TIN Match, state filing, or sending recipient copies via mail or email.

Step 2

Submit Your 1099 Form

After reviewing the form, click the Submit button to eFile your 1099 Form.

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Requirements

What Are the Requirements for Filing Form 1099-MISC Online?

Ready to file? Here's what you need to file Form 1099-MISC online quickly and easily!

Payer Details

  • Payee Name
  • TIN
  • Address

Recipient Details

  • Recipient Name
  • TIN
  • Address

Federal Details

  • Miscellaneous Income
  • Federal Tax Withheld
  •  

State Filing Details

  • State Income
  • Payer State Number
  • State Tax Withheld

Requirements

Form 1099-NEC filing requirements

Payer Details

  • Payee Name
  • TIN
  • Address

Recipient Details

  • Recipient Name
  • TIN
  • Address

Federal Details

  • Non-employee Compensations
  • Federal Tax Withheld
  •  

State Filing Details

  • State Income
  • Payer State Number
  • State Tax Withheld

Deadline 2025

1099-NEC Deadline 2025

Filing Type Due Date
Recipient Deadline Monday - February 02, 2026
E-file Deadline Monday - February 02, 2026
Paper Filing Deadline Monday - February 02, 2026

Deadline 2025

1099-MISC Deadline 2025

Filing Type Due Date
Recipient Copy (No Data in Box 8 or 10) Monday - February 02, 2026
Recipient Copy (With Data in Box 8 or 10) Monday - February 17, 2025
IRS eFile Tuesday - March 31, 2026
IRS Paper Filing Monday - March 02, 2026

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