1099-NEC vs 1099-MISC.

The one-line rule

The December 2026 instructions for Forms 1099-MISC and 1099-NEC split the work cleanly. File Form 1099-NEC, Nonemployee Compensation, for each person you paid at least $2,000 in the year for services performed by someone who is not your employee (including parts and materials), or for payments to an attorney, in box 1a. File Form 1099-MISC for the other categories: rents, royalties, prizes and awards, other income, medical and health care payments, crop insurance proceeds, fishing boat proceeds, and a few more. Only payments made in the course of your trade or business are reported, and nonprofits count as being in a trade or business. Personal payments are not reportable.

What changed for 2026 payments

The instructions say that for tax years beginning after 2025 the minimum threshold for reporting these payments and for backup withholding rose to $2,000, and may be adjusted for inflation beginning in calendar year 2027. Public Law 119-21 section 70433 made the change by amending section 6041(a) from $600 to $2,000 for payments made after December 31, 2025. The 2026 revisions of both forms also add boxes to report cash tips and overtime compensation for those who receive them.

Where each payment goes

• 1099-NEC box 1a: services by non-employees and attorney fees, $2,000 or more.
• 1099-MISC box 1: rents, $2,000 or more.
• 1099-MISC box 2: royalties, $10 or more.
• 1099-MISC box 3: prizes and awards, and other income payments, $2,000 or more.
• 1099-MISC box 5: fishing boat crew proceeds, any amount.
• 1099-MISC box 6: medical and health care payments, $2,000 or more.
• 1099-MISC box 7 or 1099-NEC box 2: direct sales of $5,000 or more of consumer products for resale.
• 1099-MISC box 8: substitute payments in lieu of dividends or tax-exempt interest, $10 or more.
• 1099-MISC box 9: crop insurance proceeds, $2,000 or more.
• 1099-MISC box 10: gross proceeds paid to an attorney, $600 or more.

If you withhold federal income tax under the backup withholding rules, you file a form for that person regardless of the amount, and the withholding goes in box 4.

Corporations, cards and apps

Payments to corporations are generally not reportable on these forms, with exceptions: attorneys’ fees and gross proceeds are reportable even if the law firm is a corporation, as are payments by federal executive agencies for services, medical and health care payments, and substitute payments in lieu of dividends. Collect a Form W-9 from each payee before you pay. Payments made by credit card or debit card, and payments through third-party networks such as payment apps, are reported by the payment settlement entity on Form 1099-K and are not subject to reporting on a 1099-MISC or 1099-NEC.

Due dates

Section 6071(c) requires Form 1099-NEC to be filed with the IRS on or before January 31, on paper or electronically. Form 1099-MISC is due February 28 if filed on paper, or March 31 if filed electronically. A date that falls on a weekend or a D.C. holiday moves to the next business day, so for 2026 payments the NEC deadline is Monday, February 1, 2027 (January 31 is a Sunday) and the paper MISC deadline is Monday, March 1, 2027 (February 28 is a Sunday). Recipient copies are due January 31 too, except for 1099-MISC returns reporting amounts in boxes 8 or 10, which are due to the recipient by February 15. The e-file threshold is 10 information returns in total, aggregated across forms.

Worked example

In 2026 you paid a freelance designer $2,300 by bank transfer and your landlord $14,400 in rent. The designer goes on a Form 1099-NEC, box 1a, due February 1, 2027. The rent goes on a Form 1099-MISC, box 1. If you had paid the designer through a payment app, no form would be due from you, because the app files the 1099-K. If you paid the designer $1,900, no form would be needed, since the level for 2026 is $2,000.

Sources

• Instructions for Forms 1099-MISC and 1099-NEC (12/2026) — which payments go on which form; due dates; corporations
• Public Law 119-21, section 70433 — raises the threshold from $600 to $2,000
• Publication 1099 (2026) — recipient due dates; e-file threshold

Figures and rules above were retrieved November 2026 from the IRS pages listed. The levels apply to payments made in calendar year 2026 and are expected to be inflation-adjusted from 2027; confirm the figure for the year you pay.

Frequently asked questions

What is the difference between 1099-NEC and 1099-MISC?

Form 1099-NEC reports nonemployee compensation: payments of at least $2,000 for services by someone who is not your employee, including attorney fees. Form 1099-MISC reports other categories such as rents, royalties, prizes, medical payments and crop insurance.

What is the 1099 filing threshold for 2026?

For payments made after December 31, 2025 the level rose from $600 to $2,000 for most payments, with $10 for royalties and substitute payments, $600 for gross proceeds paid to an attorney and $5,000 for direct sales. Backup withholding requires a form regardless of the amount.

When are 1099-NEC and 1099-MISC due?

Form 1099-NEC is due to the IRS and the recipient January 31. Form 1099-MISC is due to the IRS February 28 on paper or March 31 electronically. A weekend or holiday moves the date to the next business day.

Do I send a 1099 for payments made by PayPal or credit card?

No. Payments by credit card, debit card or third-party network are reported by the payment settlement entity on Form 1099-K, not by you on a 1099-NEC or 1099-MISC.

Do I send a 1099 to a corporation?

Generally not, with exceptions including attorneys, federal executive agency vendors and medical and health care providers. Get a Form W-9 from the payee to confirm status.