If you paid freelancers or contractors this year, 1099 season is coming. The good news is that a little prep now saves a lot of stress later.
The threshold changed. For payments made in 2026, you only need to file a 1099-NEC for contractors you paid $2,000 or more during the year. It used to be $600. Fewer forms for a lot of small businesses, but you still need to track who crosses the line.
Know the deadline. Forms are due to both the contractor and the IRS at the end of January. Since January 31, 2027 lands on a Sunday, the real due date is Monday, February 1.
Get a W-9 from every contractor. This is the big one. A W-9 gives you their legal name, address, and taxpayer ID. If you don’t have one and can’t get one, you may be required to withhold 24% from their payments once they hit the threshold, which nobody wants to deal with.
Remember it’s for services, not stuff. Paying a vendor for products generally doesn’t trigger a 1099. Paying someone for work does. Payments to corporations are often exempt, but there are exceptions (legal fees are a common one), so ask if you’re unsure.
Run a contractor total now. Pull your payments by vendor for the year so far. You’ll see who’s already over the line and who’s close, and you can request missing W-9s before the holidays hit.
Questions about who needs a form? Send us your contractor list and we’ll help you sort it out.