Source: https://rivet.global/blog/1099-nec-vs-1099-misc-us
Published: 2026-09-15 · Updated: 2026-09-15 · By Alexia M.

# 1099-NEC vs 1099-MISC: which form for which payment

When a US business files Form 1099-NEC or 1099-MISC: contractor fees vs rents and other payments, the 2026 threshold change, deadlines and foreign contractors.

## Key takeaways

- Form 1099-NEC reports nonemployee compensation, such as fees paid to independent contractors.
- Form 1099-MISC reports rents, prizes and awards, and other income types listed by the IRS.
- The One Big Beautiful Bill Act raised the reporting threshold for both from $600 to $2,000 for payments made after 31 December 2025, indexed from 2027.
- 1099-NEC is due to recipients and the IRS by 31 January; foreign contractors working abroad give you a W-8BEN instead.

Google completes "1099" with "nec", "vs w2" and "misc". US businesses mix up the two forms every January.

## Which form

| Payment | Form |
|---|---|
| Fees to an independent contractor or freelancer | 1099-NEC |
| Rent for office space or equipment | 1099-MISC |
| Prizes and awards | 1099-MISC |
| Certain royalties | 1099-MISC |
| Payments to attorneys for services | 1099-NEC |
| Gross proceeds to attorneys | 1099-MISC |

## The 2026 threshold

The One Big Beautiful Bill Act raised the threshold from $600 to $2,000 for payments made from 1 January 2026, with inflation indexing from 2027. Our article on [the 1099-NEC $2,000 threshold](/blog/form-1099-nec-2000-threshold) covers the detail.

## Deadlines

- 1099-NEC: 31 January to recipients and the IRS.
- 1099-MISC: 31 January to recipients; 28 February on paper or 31 March electronically to the IRS, in most cases.

## Before you pay

Collect a W-9 from each US contractor before the first payment. It gives you the name and TIN you need for the form. For non-US contractors abroad, collect a W-8BEN instead.

## Card and platform payments

Payments made by card or through a payment platform are reported by the processor on Form 1099-K, not by you on 1099-NEC.

## Paying into the United States: the local rail

| What | Detail |
|---|---|
| Local rail | ACH for batch payments; RTP and FedNow for instant transfers |
| Run by | Nacha for ACH; The Clearing House for RTP; the Federal Reserve for FedNow |
| Settlement | Same-day ACH within the business day, standard ACH the next; RTP and FedNow in seconds, 24/7, where both banks take part |

Source: [Nacha: Same Day ACH](https://www.nacha.org/rules/same-day-ach-moving-payments-faster). Checked when this guide was last updated; the scheme's own page has the current figures.

## Where Rivet fits

Rivet pays contractors in the US by ACH and in 120+ countries on local rails, with every payout recorded against the payee so year-end forms are easier to prepare. Rivet is not a bank; regulated partner institutions hold the funds. See [Form 1099-K threshold](/blog/form-1099-k-threshold-2026) and [US companies paying foreign contractors](/blog/us-companies-paying-foreign-contractors-w-8ben-1099).

## Questions

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

NEC is for nonemployee compensation, mainly contractor fees. MISC is for other payments such as rent, prizes and certain royalties.

### What is the 1099 threshold for 2026?

$2,000 per payee per year for payments made from 1 January 2026, up from $600, with inflation indexing from 2027.

### When is the 1099-NEC due?

By 31 January following the payment year, to both the recipient and the IRS.

### Do I file a 1099 for a contractor abroad?

Not for a non-US person working entirely outside the US. Keep a W-8BEN on file.