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Understand payment categories for the 1099-MISC and 1099-NEC
If you pay contractors or vendors, you might need to issue them a 1099 form. The two most common forms for contractors or vendors are Form 1099-NEC (Nonemployee Compensation) and Form 1099-MISC (Miscellaneous Information). We’ve listed the boxes from each form.
For most businesses, the correct and most common category to use is Box 1a - Nonemployee Compensation on the 1099-NEC. For complete details about each box and to learn what's new, refer to the IRS’s instructions for Forms 1099-MISC and 1099-NEC.
| If you have 10 or more combined 1099s, W-2s, or other federal forms to file, you must file them electronically. To learn more, see IRS and Treasury issue final regulations on e-file for businesses. |
1099-NEC boxes
1a - Nonemployee compensation
1b - Cash tips
1c - Treasury tipped occupation code (TTOC)
1d - Overtime compensation
2 - Payer made direct sales totaling $5,000 or more of consumer products to recipient for resale
3 - Excess golden parachute payments
4 - Federal income tax withheld
5 - State tax withheld
6 - State/Payer's state no.
7 - State income
1099-MISC boxes
1 - Rents
2 - Royalties
3 - Other income
4 - Federal tax withheld
5 - Fishing boat proceeds
6 - Medical and health care payments
7 - Payer made direct sales totaling $5,000 or more of consumer products to recipient for resale
8 - Substitute payments in lieu of dividends or interest
9 - Crop insurance proceeds
10 - Gross proceeds paid to an attorney
11 - Fish purchased for resale
12 - Section 409A deferrals
13a - Cash tips
13b - Treasury tipped occupation code (TTOC)
14 - Overtime compensation
15 - Nonqualified deferred compensation
16 - State tax withheld
17 - State/Payer's state no.
18 - State income
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