When did 1099-NEC come back?

2020 — replaced 1099-MISC Box 7 for services.

Are attorney fees MISC or NEC?

NEC — even though pre-2020 they were MISC.

New 1099-DA for digital asset sales (2025+).

1099-MISC vs 1099-NEC Classification 2027 Calculator

1099-NEC: non-employee compensation $600+ for services (since 2020). 1099-MISC: rent, royalties, prizes, awards, medical/legal services. Wrong form = $310 penalty per form, $3,860 cap per business. Lawyer payments always 1099-NEC, not MISC (despite '90s rule). Crypto $600+ on 1099-DA (new 2025).

Payment type

Annual amount ($)

1099-NEC (since 2020)

Non-employee compensation $600+ for services. Includes contractor labor, freelance, consulting. ALSO attorney fees (replaced 1099-MISC for this in 2020).

1099-MISC (post-2020)

Rents (Box 1), royalties (Box 2), other income/prizes (Box 3), medical/healthcare non-corp (Box 6). NOT services (use NEC).

Penalty Structure

$310 per form 2024 ($330 projected 2027). Max $3,860/biz/year. Doubled for intentional disregard. State penalties separate.

Source and Disclaimer

IRS Form 1099-NEC + 1099-MISC instructions, 1099-DA new for 2025+. Always file recipient copy by Jan 31 (NEC) or Feb 28 (MISC paper).

Source: irs.gov/forms-pubs/about-form-1099-misc. Last updated: May 2026.