What Form 1099-MISC does
Form 1099-MISC reports miscellaneous payments that don’t fit the “payment for services” category covered by 1099-NEC. Common examples include rent paid to a landlord, royalty payments, prize or award money, and certain legal settlement proceeds.

How it’s different from 1099-NEC
This is the most common point of confusion: before 2020, contractor payments were reported on 1099-MISC. That changed; contractor/service payments now go on 1099-NEC, while 1099-MISC is reserved for the other categories listed above. If your business pays both contractors and, say, rent to a landlord, you may need to issue both forms to different recipients.

Who needs to issue one
Generally, businesses that paid $600 or more in rents, royalties, prizes, or certain other miscellaneous income during the year.

When it’s due
Typically due to recipients by January 31, and filed with the IRS by February 28 (paper) or March 31 (electronic).

How Luminary can help
We help you correctly classify which payments belong on 1099-NEC versus 1099-MISC; getting this wrong is a common, avoidable mistake, and Luminary can make sure both are filed accurately and on time.