Paid for work? NEC. Paid for rent or royalties? MISC. Get it backwards and the penalty is $60 to $690 per form, twice. A $4,800 web design job goes on NEC. $9,600 of office rent goes on MISC. Attorney fees of $2,000 or more go on NEC even when paid to a corporation.
Read the full guide: https://www.claritywithai.org/2026/12/1099-nec-vs-1099-misc.html
Also read: https://www.claritywithai.org/2026/12/what-is-a-1099-form.html
1099 hub: https://www.claritywithai.org/p/1099-forms-explained-complete-guide-for.html