General tax support

⚠️ Important: Review Tremendous taxes to understand what Tremendous does and does not cover for taxes. Tremendous doesn’t provide tax advice. This guide is general information only. Please consult a qualified tax professional for your specific situation.

Reasons for TIN validation errors

Common reasons for TIN validation errors:

Issue Description Common solution
Name/TIN mismatch or typo (most common) The legal name submitted doesn’t match what the IRS has on file for that TIN. Small differences (punctuation, order, suffixes) can fail the IRS “name control” match. Enter the exact legal name or EIN assignment letter. Avoid extra punctuation/words. Reference social security cards or EIN assignment letters for an exact match.
Wrong TIN type or name-line pairing SSN paired with a business name or EIN paired with an individual’s name. Sole props often put the DBA as the primary name. Pair SSN with an individual’s legal name. Pair EIN with an entity’s legal name. Double-check the entity type.
Recently issued EIN or recent legal name change IRS systems can lag; brand-new EINs or name updates may not match yet. Use the name on the EIN assignment letter and retry after the IRS update window (often a few weeks).
TIN not currently issued The number isn’t found in IRS/SSA records. Ask for a corrected W-9; verify the TIN with the payee. If unresolved, follow the guidance of your tax advisor.
Personal name change not updated Marriage/divorce or hyphenated surnames not yet updated with SSA/IRS. Use the name on file with SSA/IRS; have the payee update their record (SSA for SSN; IRS for EIN/name changes).

Differences between a 1099-NEC and a 1099-MISC

The short answer

Both are 1099 forms, but they report different kinds of payments. Use 1099‑NEC for non‑employee services. Use 1099‑MISC for other specified payment types like rent, prizes, and royalties.

What the forms are

  • Form 1099‑NEC – “Nonemployee Compensation.” This form is dedicated to reporting payments for services performed by someone who isn’t your employee.
  • Form 1099‑MISC – “Miscellaneous Information.” This form is used to report various types of miscellaneous income not reported on other forms. Despite the name, it’s not for wage or salary payments (those typically go on a W-2).

When to use 1099‑NEC

Report payments for services performed by someone who isn’t your employee.

  • You paid $600 or more for services during the year
  • The payee isn’t on payroll (not a W‑2 employee)
  • Often covers services, not goods or materials

Examples: web design, marketing consulting, freelance writing, contract IT, landscaping, construction contracting

When to use 1099‑MISC

Report non‑service payment types, including:

  • Rent ($600+)
  • Prizes and awards ($600+)
  • Royalties ($10+)
  • Legal settlements (non‑service portions) ($600+)
  • Medical or healthcare payments ($600+)
  • Fish purchased for resale ($600+)

If you made a reportable payment that isn’t for services by a non-employee (and isn’t reportable on a more specific form like 1099-INT or 1099-DIV), it likely belongs on 1099-MISC.

Pro tips

  • Paying for work to a non‑employee → likely 1099‑NEC
  • Paying rent, royalties, prizes, or specified non‑service categories → likely 1099‑MISC

Related articles

Glossary

  • Eligibility threshold — The annual total at which a W‑9 form is required and 1099 reporting may be triggered.
  • External user ID — Your unique identifier for a recipient; overrides email for eligibility tracking.
  • Tax Entity — The legal Payer under which teams roll up for eligibility and filing.
  • Tax review queue — A holding area for rewards that need admin action (e.g., failed TIN match).
  • TIN - Taxpayer Identification Number (e.g., Social Security number "SSN", Employer Identification Number "EIN")
  • TIN validation — Real‑time matching of Name + TIN against IRS records.
  • US person - See the IRS definition of a US person.
  • W‑9 — IRS form used to collect TIN and address for U.S. persons.

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