1099-NEC vs 1099-MISC: which form to use
The short rule: pay for services from someone who is not your employee, use 1099-NEC. Pay rent, royalties, prizes, medical payments or legal settlements, use 1099-MISC. The details below come from the IRS instructions revised December 2026.
Common payments and the right form
| You paid | Form and box | Threshold for 2026 |
|---|---|---|
| A freelancer or contractor for services (parts and materials included) | 1099-NEC box 1a | $2,000 |
| A lawyer's fees for legal services, even a law firm that is a corporation | 1099-NEC box 1a | $2,000 |
| A settlement paid to a claimant's lawyer (gross proceeds) | 1099-MISC box 10 | $600 |
| Rent for office space or equipment, paid to the owner | 1099-MISC box 1 | $2,000 |
| Rent paid to a real estate agent or property manager | No 1099 from you. The manager reports the rent to the owner. | Not applicable |
| Royalties | 1099-MISC box 2 | $10 |
| Prizes and awards not for services, other income | 1099-MISC box 3 | $2,000 |
| Doctors, clinics and other health care providers, corporations included | 1099-MISC box 6 | $2,000 |
| Fishing boat proceeds | 1099-MISC box 5 | Any amount |
| Crop insurance proceeds (insurers) | 1099-MISC box 9 | $2,000 |
| Consumer products sold to someone for resale | 1099-NEC box 2 or 1099-MISC box 7 | $5,000 |
| Any of the above with federal backup withholding | Box 4 of the same form | Any amount |
| Merchandise, freight, storage, telephone | No 1099 | Not applicable |
| Payments by credit card or payment app | No 1099 from you. The payment company files Form 1099-K. | Not applicable |
| Employees' wages, bonuses, prizes | Form W-2, not a 1099 | Not applicable |
The four-part NEC test
The IRS says a payment is generally nonemployee compensation when all four are true:
- The payee is not your employee.
- The payment is for services in the course of your trade or business. Nonprofits and government agencies count.
- The payee is an individual, partnership or estate, or in some cases a corporation.
- You paid the payee at least $2,000 in the year.
Payments for services that are not subject to self-employment tax go in 1099-MISC box 3 instead.
Payments to corporations
Payments to C or S corporations, including LLCs taxed as corporations, usually need no 1099. The exceptions are attorney fees (1099-NEC), gross proceeds paid to attorneys (1099-MISC box 10), medical and health care payments (1099-MISC box 6), substitute payments in lieu of dividends (box 8) and cash for fish bought for resale (box 11). The W-9 tells you how an LLC is taxed.
What differs when you file
| Item | 1099-NEC | 1099-MISC |
|---|---|---|
| Due to the IRS (tax year 2026) | February 1, 2027 | March 1, 2027 on paper, March 31, 2027 e-filed |
| Automatic 30-day extension | No | Yes, in the IRIS portal |
| IRIS CSV template | 54 columns | 64 columns |
IRIS needs a separate CSV for each form. The IRIS CSV tool builds both from the same contractor export. Run it once per form.
Frequently asked questions
Do I use 1099-NEC or 1099-MISC for a contractor?
Do I send a 1099 to my landlord?
Can I put NEC and MISC payments for the same person on one form?
Sources
- IRS: Instructions for Forms 1099-MISC and 1099-NEC
- IRS Publication 5717, IRIS Taxpayer Portal User Guide (Rev. 9-2026)
Last reviewed November 1, 2026.