1099-MISC vs. 1099-NEC

The IRS split nonemployee compensation out of Form 1099-MISC onto its own form, 1099-NEC, so the two forms now cover different kinds of payments with different deadlines. The rule of thumb: services by a non-employee go on the 1099-NEC; most other reportable business payments go on the 1099-MISC.

Side by side

	Form 1099-NEC	Form 1099-MISC
Main use	Pay for services by a non-employee	Rent, prizes, royalties, medical payments, attorney gross proceeds and more
Typical recipients	Freelancers, independent contractors, attorneys (fees)	Landlords, prize winners, royalty holders, medical providers, attorneys (settlement proceeds)
Main threshold for 2026 payments	$2,000	$2,000 for most boxes; $10 royalties; $600 attorney gross proceeds
Furnish to recipient	February 1, 2027	February 1, 2027; February 16, 2027 if box 8 or 10 has an amount
File with the IRS	February 1, 2027, paper or electronic	March 1, 2027 on paper; March 31, 2027 electronically
PayStubShop recipient copies	$9.99 per recipient	$12.99 per recipient

The 2027 dates reflect weekend and holiday shifts. January 31, 2027 is a Sunday, February 28, 2027 is a Sunday, and February 15, 2027 is Washington's Birthday.

2026 thresholds, form by form

For payments made after 2025, the threshold for most 1099-NEC and 1099-MISC categories rose from $600 to $2,000. It may be adjusted for inflation starting in 2027. Some categories didn't change:

Payment	Form and box	2026 threshold
Nonemployee compensation, including attorneys' fees	NEC box 1a	$2,000
Rents	MISC box 1	$2,000
Royalties	MISC box 2	$10
Prizes, awards and other income	MISC box 3	$2,000
Fishing boat proceeds	MISC box 5	Any amount
Medical and health care payments	MISC box 6	$2,000
Substitute payments in lieu of dividends or tax-exempt interest	MISC box 8	$10
Crop insurance proceeds	MISC box 9	$2,000
Gross proceeds paid to an attorney	MISC box 10	$600
Section 409A deferrals; nonqualified deferred compensation	MISC boxes 12, 15	$2,000
Direct sales of $5,000+ of consumer products for resale	NEC box 2 or MISC box 7	$5,000
Any payment with backup withholding	Box 4 on either form	Any amount

If you report direct sales on the 1099-NEC instead of the 1099-MISC, the earlier NEC filing deadline applies.

Worked example: one business, several payees

A small marketing agency made these payments in 2026:

Payee	What was paid	Amount	Form
Freelance designer	Logo and campaign work	$4,800	1099-NEC, box 1a
Office landlord (an individual)	Office rent	$18,000	1099-MISC, box 1
Contest winner	Prize from a customer promotion	$2,500	1099-MISC, box 3
Agency's law firm	Fees for contract review	$3,200	1099-NEC, box 1a, even if the firm is a corporation
Claimant's law firm	Settlement of a customer's claim, paid to the claimant's attorney	$25,000	1099-MISC, box 10, for gross proceeds paid to an attorney
Photographer	One shoot	$1,500	None; under $2,000 for 2026
Software subscription (a corporation)	Services	$2,400	None; payments to corporations are generally exempt

The two law firm rows show the difference most clearly. Fees for a firm's services to your business go on the 1099-NEC. Gross proceeds paid to an attorney, such as a settlement paid to a claimant's lawyer, go on the 1099-MISC.

What's new on the 2026 forms

Both forms gained boxes for cash tips, Treasury tipped occupation codes and overtime compensation under P.L. 119-21: boxes 1b, 1c and 1d on the 1099-NEC, and boxes 13a, 13b and 14 on the 1099-MISC. On the 1099-NEC, nonemployee compensation moved to box 1a. Excess golden parachute payments now go on the 1099-NEC (box 3) rather than the 1099-MISC.

What both forms share

• Collect a W-9 first. It gives you the payee's name, TIN and tax classification. We prepare W-9s free.
• Business payments only. Personal payments aren't reportable.
• Truncated TINs are allowed on recipient copies, but not on the copy filed with the IRS.
• E-filing is required at 10 or more information returns in total, counting W-2s. Starting with 2026 returns filed in 2027, the IRS's IRIS portal is the only electronic intake system, because FIRE is being retired.
• Paper Copy A must be scannable. The IRS warns that Copy A printed from its website can't be scanned. See generated vs. filed tax forms.

Making either form with PayStubShop

Our 1099-NEC generator and 1099-MISC generator prepare recipient copies and copies for your records. Batch several recipients in one order and combine both forms, W-2s or stubs in one checkout. You still file Copy A with the IRS yourself, through IRIS or on official scannable paper with Form 1096.