1099-MISC vs 1099-NEC: Key Differences Explained Simply

Understanding the differences between Form 1099-MISC and Form 1099-NEC is essential for accurate tax reporting. This straightforward guide breaks down when each form is used, who must file them, and how payments are categorized. Learn why nonemployee compensation now belongs on Form 1099-NEC, while other income types—like rent, prizes, or royalties—remain on Form 1099-MISC. With clear explanations and practical examples, this comparison helps freelancers, contractors, and businesses avoid filing mistakes and stay compliant during tax season.