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Level 1
posted Feb 19, 2025 11:59:26 AM

I have a few different forms, some1099-NEC & 1099-MISC. What is the difference?

I have a few different forms, some1099-NEC & 1099-MISC. What is the difference?

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3 Replies
Expert Alumni
Feb 19, 2025 12:51:02 PM

A 1099-NEC is used to report Non-Employee-Compensation - usually money paid to a contractor.

 

A 1099-MISC is used to report miscellaneous income that is received not necessarily in the course of trying to earn money.

 

Here is more information on the 1099-NEC

 

Here is more information on the 1099-MISC.

 

@JENA13 

Level 1
Feb 19, 2025 1:32:50 PM

Does it make sense for a mental health counselor to get 1099-MISC forms from healthcare/insurance companies (box 6) then because they are paid by clients this way? Is this worse than a 1099-NEC or taxed differently, or it doesn't matter?

Expert Alumni
Feb 19, 2025 1:36:10 PM

It should not make any difference in that instance.  All of the income on those forms should be included in business income if that was the way it was earned.

 

@JENA13