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Understanding the Difference Between 1099-MISC Box 3 and Box 7
October 30, 2025
Q. What is the difference between 1099-MISC Box 3 and Box 7?
A.
(Answered by IOFM's third-party tax expert)
It appears you are referencing the old rules (pre-2019) when contract labor was reported on box 7 of Form 1099-MISC. Contract labor is now reported on 1099-NEC. The catch-all "other income" is reported in box 3 of Form 1099-MISC.The distinction revolves around "services." If you are paying someone for their services to you, and they're not your employee, then they are your contractor.…
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