The 1099-NEC reports pay for services from someone who isn’t an employee: freelancers, contractors, consultants. The 1099-MISC reports most other payments a business makes: rent, royalties, prizes and awards, medical payments, and gross proceeds paid to attorneys. For 2026 the general threshold for both rose to $2,000, with lower thresholds for royalties and attorney proceeds.
Which form for which payment
| Payment | Form |
|---|---|
| Freelance design, writing, consulting | 1099-NEC |
| Fees to a contractor or speaker | 1099-NEC |
| Office or equipment rent | 1099-MISC |
| Royalties on a book, photo or song | 1099-MISC |
| Prizes and awards not for services | 1099-MISC |
| Legal settlement paid to an attorney | 1099-MISC |
| Paid by card, PayPal or an app | 1099-K (from the platform) |
The 2026 thresholds
- $2,000: nonemployee pay on the 1099-NEC; rents, other income and medical payments on the 1099-MISC. Up from $600, and indexed for inflation from 2027.
- $600: gross proceeds paid to an attorney.
- $10: royalties.
Payments to corporations are generally exempt, except legal fees. The 1099-NEC guide covers who should get one now the threshold has moved.
Why it matters for your tax
Income on a 1099-NEC is self-employment income: it goes on Schedule C and carries 15.3% self-employment tax on profit as well as income tax. Most 1099-MISC income doesn’t: rent usually goes on Schedule E, and prizes and other income on Schedule 1, taxed as ordinary income without self-employment tax. Royalties go on Schedule E, unless you’re in the business of creating the work, in which case they belong on Schedule C.
Deadlines
- 1099-NEC: January 31 to the worker and to the IRS, on paper or electronically.
- 1099-MISC: January 31 to the recipient; to the IRS by February 28 on paper or March 31 electronically.
For 2026 payments, January 31, 2027 is a Sunday, so the dates move to Monday, February 1.
If you get the wrong one
A client who reports your freelance fee on a 1099-MISC hasn’t changed what the income is: report it as business income on Schedule C anyway. If the amount is wrong, ask the payer for a corrected form, and report the right figure. Your own records, not the form, decide your income.
Questions, answered
What is the difference between a 1099-MISC and a 1099-NEC?
The 1099-NEC reports payments for services by non-employees. The 1099-MISC reports other payments such as rent, royalties, prizes, medical payments and gross proceeds to attorneys.
What is the 1099-MISC threshold for 2026?
$2,000 for rents, other income and medical payments, $600 for gross proceeds paid to attorneys, and $10 for royalties.
Is 1099-MISC income subject to self-employment tax?
Usually not. Rent, prizes and most other 1099-MISC income are taxed as ordinary income without self-employment tax. Royalties earned in a business of creating the work are the exception.
When are 1099-NEC and 1099-MISC forms due?
Both go to the recipient by January 31. The 1099-NEC is also due to the IRS by January 31; the 1099-MISC by February 28 on paper or March 31 electronically. For 2026 payments the January date moves to February 1, 2027.
Sources
- Instructions for Forms 1099-MISC and 1099-NEC — IRS. The 2026 thresholds and due dates.
- About Form 1099-MISC — IRS. What the form reports.
- About Form 1099-NEC — IRS. Nonemployee compensation.
