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Which 1099 Form Do I Need? (Quick Guide for Businesses)

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Erich Ruth

Not sure whether to file a 1099-NEC, 1099-MISC, 1099-K, or something else?
This short guide walks you through the most common 1099 forms, when each one applies, and how to choose the correct form for contractors, rent payments, interest, dividends, brokers, platforms, and digital assets.

At the end, you can click directly into the software you need to file.

Start Here: Three Questions That Tell You the Right Form

Before choosing a form, ask:

  1. Who did you pay?
    Individuals and sole proprietors usually require 1099s; corporations often don’t (with exceptions).
  2. What was the payment for?
    Services, rent, interest, dividends, sales of assets, digital assets, etc.
  3. How did you pay?
    Direct payment (check/ACH) → NEC/MISC forms
    Through PayPal/Stripe/etc. → often 1099-K (issued by the processor)

Quick Comparison of the Most Common 1099 Forms

FormUsed For
1099-NECNonemployee compensation (independent contractors, freelancers)
1099-MISCRents, royalties, prizes, medical payments, attorney payments
1099-INTInterest income of $10+
1099-DIVDividends and capital gain distributions
1099-BSales of stocks, securities, and certain barter transactions
1099-KPayment card and third-party platform transactions (Stripe, PayPal, Square)
1099-DADigital asset transactions (crypto, some NFTs)

1099-NEC vs 1099-MISC (Most Common Confusion)

Use 1099-NEC if:

  • You paid $600+
  • The payment was for services
  • The worker is not your employee

Examples: freelance developers, designers, consultants, gig workers.

Use 1099-MISC if:

  • You paid rent, royalties, prizes, awards,
  • Medical or health care payments,
  • Attorney proceeds

Rule of thumb:
If you paid someone for work they performed, it’s usually 1099-NEC, not 1099-MISC.

Interest, Dividends, and Broker Transactions

1099-INT – Interest Income

Banks, lenders, and businesses issuing interest of $10 or more.

1099-DIV – Dividends & Distributions

Corporations, funds, and brokers paying dividends to shareholders.

1099-B – Broker Transactions

Sales of stocks, mutual funds, options, and some barter exchanges.

Platform Payments and Digital Assets

1099-K – Payment Processors

Issued by PayPal, Stripe, Square, and other payment settlement entities.
This generally doesn’t replace filing 1099-NEC if you paid the contractor directly.

1099-DA – Digital Assets

Used by crypto and digital asset platforms to report customers’ sales or exchanges.

Quick Examples to Make It Easy

  • Paid a contractor by check → 1099-NEC
  • Paid rent to a landlord who is an individual → 1099-MISC
  • Paid interest on a private loan → 1099-INT
  • Your brokerage sold stock for a client → 1099-B
  • You run a payment platform and processed sales → 1099-K
  • You operate a crypto platform and customers sold digital assets → 1099-DA

Due Date Snapshot

  • 1099-NEC: January 31 (recipient + IRS)
  • Most other 1099s: January 31 to recipients, and March 31 to the IRS if e-filed

Always check the IRS instructions each year.

Still Not Sure Which Form You Need?

Download a free trial of any 1099FIRE software and test importing your data.
When you’re ready, unlock the full version and file electronically with the IRS.

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