A new year means it’s time to get your 1099s in order. If you paid contractors in 2025, paid rent for office space, or issued royalty payments, there’s a good chance you’ll need to file one or more forms. Rules are not complicated – but waiting until the last minute may often lead to errors, missed deadlined, or unnecessary penalties.
Here’s a clear overview of who should receive a 1099, which form to use, and the deadlines to keep in mind.
Key Forms & Who Gets Them
Form 1099-NEC – Nonemployee Compensation
Issue this form if you paid $600+ to a freelancer, contractor, or consultant who is not your employee.
- Applies to individuals, sole proprietors, and partnerships
- Usually not issued to corporations, except for certain cases like attorney fees
- LLCs depend on their tax classification (check the W-9)
Deadline: Send to recipients and file with the IRS by February 2, 2026.
Form 1099-MISC – Miscellaneous Income
Use this form for:
- Rent payments ($600+)
- Royalties ($10+)
- Prizes or awards
- Certain medical or healthcare payments, even to corporations
Deadlines:
- To recipients: February 2, 2026
- To IRS: March 2 (paper) or March 31 (electronic)
Form 1099-K – Third-Party Payments
If you paid vendors through platforms like PayPal, Venmo Business, Square, or credit cards, you do not issue a 1099-NEC or 1099-MISC.
- The payment processor handles the 1099-K
- Keep clear records to avoid duplicate reporting
How to Stay Organized
- Collect updated W-9s from all 2025 vendors and contractors
- Verify vendor details (legal names, addresses, taxpayer IDs)
- Create a checklist of vendors requiring 1099s
Avoid Penalties
Late or incorrect 1099s can cost $60–$330 per form. Review your records early and confirm your filing requirements before the February 2 deadline.
Keep in mind that our team is ready to assist you in any step of the process. Contact us today.