Understand the critical difference between IRS Form 1099-MISC and Form 1099-NEC. Use 1099-NEC to report payments for services (like freelancers or contractors). Use 1099-MISC for other income such as rent, royalties, or prizes. Filing the wrong form can lead to IRS penalties. Learn when and how to file each form correctly to stay compliant. https://www.localhomeservicesblog.co.uk/2025/12/02/how-to-choose-1099-misc-vs-1099-nec-for-your-business/