When it comes to reporting income for tax purposes, especially when dealing with independent contractors or freelancers, two forms are commonly used: Form 1099-NEC and Form 1099-MISC. Both of these forms play a critical role in helping businesses and the IRS track payments made to non-employees. However, understanding the key differences and when to use each form is crucial for businesses to stay compliant with tax regulations. This blog provides an in-depth comparison of these forms, and explains their functions, use cases, and filing requirements.