Which 1099 should I select?

1099-NEC (Most common)

Non-employee compensation: Used for paying freelancers, contractors and others for services.

1099-MISC (Less common)

Rent: Report business rent paid to a non-corporate entity, such as an individual.

Royalties: Payments $10 or more for the use of intellectual property.

Other Income: Prizes, legal settlements, income from hobbies, bonus payments and more.

Not common

Fishing Boat Proceeds: Share of income paid to crew members from a commercial fishing boat.

Medical and Health Care Payments: Payments of $600 or more to doctors, hospitals, or medical providers.

Substitute Payments in Lieu of Dividends or Interest: Payments made when a broker covers dividends or interest owed to an investor.

Crop Insurance Proceeds: Insurance payouts of $600 or more to farmers for crop losses.

Gross Proceeds Paid to an Attorney: Total payments to an attorney, even if not for legal services.

Fish Purchased for Resale: Payments to anyone who catches and sells fish to resell in business.

Section 409A Deferrals: Deferred income reported under IRS Section 409A rules.

Non-qualified Deferred Compensation: Payments from a non-qualified deferred compensation plan.

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