There are some major differences between them.
- Money you earn as a contractor, consultant, freelancer, or other independent worker
- It's reported on 1099-NEC (Box 1), 1099-K (Box 1a), or as cash, check or credit card sales transactions
- Requires you to complete Schedule C
- You can deduct expense related to the income
- Requires you to pay self-employment tax
- Money you received from something like a prize, award, lawsuit settlement, etc.
- It's most often on a 1099-MISC (Box 3)
- You report it on Line 8 of Schedule 1 of the Form 1040