Paying an Attorney: 1099-NEC Box 1a or 1099-MISC Box 10?

October 17, 2026 · 3 min read

Educational information only. Not tax, legal or financial advice. We are not the IRS and are not affiliated with it. Check IRS.gov and consider a qualified tax professional. Sources read October 17, 2026. Anything marked expected should be re-checked. Examples use made-up numbers. This page contains no affiliate links.

Short answer: The IRS instructions say attorneys' fees of $2,000 or more paid in the course of your trade or business are reported in box 1a of Form 1099-NEC. Separately, gross proceeds of $600 or more paid to an attorney in connection with legal services that are not for the attorney's own services (for example a settlement payment) go in box 10 of Form 1099-MISC. "Attorney" includes a law firm or other provider of legal services.

The key exception to the corporation rule

Payments to corporations are usually exempt from 1099 reporting, but the IRS says that exemption does not apply to payments for legal services. You report attorneys' fees (box 1a, 1099-NEC) or gross proceeds (box 10, 1099-MISC) even when the law firm is a corporation. The IRS also says wages paid to attorneys (reportable on Form W-2) and partnership profit distributions (Schedule K-1) are outside these rules.

Which box when

The IRS insurance-company example

An insurer pays a claimant's attorney $100,000 to settle a claim. The insurer reports $100,000 as gross proceeds in box 10. It generally has no duty to report the claimant's attorney's fees later paid from those funds.

Double reporting

The IRS example: a business that pays $2,000 of taxable damages to a claimant by paying the claimant's attorney furnishes a Form 1099-MISC to the claimant (damages, generally box 3) and a Form 1099-MISC to the attorney (gross proceeds, box 10). The IRS says these rules apply whether or not the attorney is the exclusive payee or the legal services are provided to the payer.

TIN

You need the attorney's TIN; Form W-9 can be used. The attorney must promptly provide a TIN but is not required to certify it. If the attorney doesn't provide one, you must backup withhold on reportable payments (see W-9 and backup withholding).

Made-up example

You pay a law firm (a corporation) $3,500 to draft contracts: report $3,500 in 1099-NEC box 1a despite the corporate status. You also pay $10,000 to a lawyer's client account to settle a dispute: report $10,000 in 1099-MISC box 10.

Related

Who gets a 1099-NEC · Exceptions

FAQ

Does the $2,000 threshold apply to box 10?

No: the IRS text uses $600 for box 10 gross proceeds.

What about payments by credit card?

Those are generally reported by the card processor on 1099-K, not by you.

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