06f – Form 1099-MISC vs. Form 1099-NEC

📄 Form 1099-MISC vs. Form 1099-NEC :-

Both forms are used to report non-wage payments, but they serve different purposes after the IRS split reporting in 2020.

🔍 Form 1099-MISC – Miscellaneous Information
🔍 Form 1099-NEC – Nonemployee Compensation

📊 Form 1099-MISC vs. Form 1099-NEC – Key Differences

🔹 Purpose
*1099-MISC → Reports miscellaneous payments (rent, royalties, prizes, legal settlements, etc.)
*1099-NEC → Reports nonemployee compensation (independent contractors, freelancers, gig workers)

🔹 Payment Types
*1099-MISC → Rent, royalties, awards, certain attorney fees, other income over $600
*1099-NEC → Services performed by nonemployees, $600+ payments for freelance/contract work

🔹 Who Gets It
*1099-MISC → Landlords, attorneys, prize winners, royalty earners, etc.
*1099-NEC → Freelancers, consultants, service providers, gig workers

🔹 Filing Deadline
*1099-MISC →
To Recipient: January 31
To IRS: Feb 28 (Paper) / Mar 31 (E-file)
*1099-NEC →
To Recipient & IRS: January 31 (same for both)

🔹 IRS Change (Since 2020)
Before 2020, nonemployee compensation was reported on 1099-MISC (Box 7).
Now, it must be reported separately on 1099-NEC.

💡 Example:
– Paid $10,000 to a contractor → Report on 1099-NEC
– Paid $15,000 office rent → Report on 1099-MISC