What's the Difference Between Form 1099-NEC and Form 1099-MISC?

Both Form 1099-NEC and Form 1099-MISC are used to report payments that aren't wages, but they cover different types of income. Form 1099-NEC (Nonemployee Compensation) is specifically for payments made to independent contractors, freelancers, and self-employed individuals for services rendered — it was reintroduced in 2020 after the IRS split this reporting off from 1099-MISC. Form 1099-MISC is used for a variety of other payments, including rent, royalties, prizes, medical and health care payments, and attorney fees. If you're a freelancer, you should expect to receive a 1099-NEC for any client who paid you $600 or more during the year. The income on a 1099-NEC goes on Schedule C and is subject to self-employment tax, while 1099-MISC income is reported on different parts of your return depending on the income type.