• Form 1099-NEC (US)
  • Form 1099-MISC (US, tax year 2026)

A Form 1099 is one of a family of US information returns that a business files with the IRS, with a copy to the person it paid. For a small business that pays contractors, the two that come up are Form 1099-NEC, for nonemployee compensation, and Form 1099-MISC, for payments such as rent and royalties. For tax year 2026, the current IRS instructions set the 1099-NEC filing threshold at $2,000. For tax year 2025, IRS Publication 334 gives $600. Form 1099-NEC is due to the IRS and to the recipient by January 31. A Form W-9 collects the payee's taxpayer identification number (TIN), and the IRS "suggests that you request" one from a US recipient. Ask your accountant which forms apply to your payments.

Billed publishes this page. It's general information about US federal tax, not tax advice. The IRS quotes come from the Instructions for Forms 1099-MISC and 1099-NEC (revised December 2026, for 2026 information), Publication 334 (2025), the General Instructions for Certain Information Returns (2025), the IRS page on reporting payments to independent contractors (last reviewed May 22, 2026) and the About Form 1099-NEC page (last reviewed June 7, 2026). All were opened on October 30, 2026. State filing rules can differ.

Form 1099-NEC (US)

The IRS About Form 1099-NEC page says: "Use Form 1099-NEC to report nonemployee compensation."

The IRS page on reporting payments to independent contractors says: "If the following four conditions are met, you must generally report a payment as nonemployee compensation." The conditions are:

  • "You made the payment to someone who is not your employee."
  • "You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations)."
  • "You made the payment to an individual, partnership, estate, or in some cases, a corporation."
  • "You made reportable payments to a payee that total the threshold amount or greater during the year."

Tax year 2026 threshold. The Instructions for Forms 1099-MISC and 1099-NEC (revised December 2026) say: "File Form 1099-NEC, Nonemployee Compensation, for each person in the course of your business during the year to whom you have paid at least $2,000 in:" The first item is "Services performed by someone who is not your employee (including parts and materials) (box 1a)". Under What's New, they say: "For tax years beginning after 2025, the minimum threshold amount for reporting certain payments required to be reported on certain information returns and/or perform backup withholding on those payments increased to $2,000 and may be adjusted for inflation beginning in calendar year 2027."

Tax year 2025 threshold. Publication 334 (2025) says: "File Form 1099-NEC, Nonemployee Compensation, for each person in the course of your business to whom you have paid at least $600 during the year in:"

Backup withholding. The 2026 instructions say: "You must also file Form 1099-NEC for each person from whom you have withheld any federal income tax (report in box 4) under the backup withholding rules regardless of the amount of the payment."

Form 1099-MISC (US, tax year 2026)

The 2026 instructions say: "File Form 1099-MISC, Miscellaneous Information, for each person in the course of your business to whom you have paid the following during the year." The list includes:

  • "At least $10 in royalties"
  • "At least $600 in gross proceeds paid to an attorney (box 10)"
  • "At least $2,000 in:" items including "Rents (box 1);", "Prizes and awards, including certain non-government grants (box 3);" and "Medical and health care payments (box 6);"

Due dates (US)

The 2026 instructions say: "Section 6071(c) requires you to file Form 1099-NEC on or before January 31, using either paper or electronic filing procedures. File Form 1099-MISC by February 28, if you file on paper, or March 31, if you file electronically. If any date shown falls on a Saturday, Sunday, or legal holiday in the District of Columbia or where the return is to be filed, the due date is the next business day."

For copies to recipients, they say for Form 1099-NEC: "You are required to furnish the payee statements and file with the IRS by January 31." For Form 1099-MISC: "You are required to furnish the payee statements by January 31 and file with the IRS by February 28 (March 31, if filing electronically)."

The same instructions say: "Use the December 2026 revision of Form 1099-MISC and Form 1099-NEC and these instructions to file 2026 information with the IRS in early 2027."

On electronic filing, the IRS independent contractors page says: "Employers who file 10 or more information returns, Form 1099 series, Form 1042-S, and Form W-2, are required to file them electronically."

Requesting a Form W-9

The General Instructions for Certain Information Returns (2025) say: "If the recipient is a U.S. person (including a U.S. resident alien), the IRS suggests that you request the recipient complete Form W-9, Request for Taxpayer Identification Number and Certification". They also say: "You may be subject to a penalty for an incorrect or missing TIN on an information return."

The W-9 form guide covers what the form asks for and how to request it.

Card and payment app payments: Form 1099-K

The 2026 instructions say: "Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC or Form 1099-NEC."

If you receive a 1099

Publication 334 (2025) says: "You must report on your tax return all income you receive from your business, including income not reported to you on a Form 1099 filed by the payor, unless it is excluded by law." Compare each 1099 you receive with your own invoices and payment records, and ask your accountant about any difference.

For what you may owe on that income, see self-employment tax and quarterly estimated tax.

Sample: which contractors get a 1099-NEC (tax year 2026)

The figures here are a sample for the 2026 tax year. A design studio paid three contractors in 2026. Each one is an individual, isn't an employee, did services for the business and returned a Form W-9. No backup withholding applied.

  1. Contractor A: one bank transfer of $1,500. $1,500 is less than $2,000, so the studio doesn't file Form 1099-NEC for A.
  2. Contractor B: two bank transfers, $1,200 + $950 = $2,150. $2,150 is at least $2,000, so the studio files Form 1099-NEC for B.
  3. Contractor C: $3,000 paid by credit card. Under the instructions quoted above, card payments go on Form 1099-K, which the payment settlement entity files, not on Form 1099-NEC.

Due date for B's form: January 31, 2027 falls on a Sunday. Under the IRS rule quoted above, the due date moves to the next business day, Monday, February 1, 2027.

Where Billed fits

Billed's expenses and receipts page says: "An expense in Billed records who you paid, when, how much and which category it belongs to, with the receipt attached to the same entry." It also says: "Reports can be filtered by date range and exported for your accountant, bookkeeper or tax software." For income you receive, Billed's invoice software page says: "Invoice reports show which invoices are paid, partially paid or past due, and you can see who owes you money and send them a payment reminder."

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Frequently Asked Questions

What is the 1099-NEC threshold for tax year 2026?

The IRS Instructions for Forms 1099-MISC and 1099-NEC (revised December 2026) say: "File Form 1099-NEC, Nonemployee Compensation, for each person in the course of your business during the year to whom you have paid at least $2,000 in:" services by someone who isn't your employee, or payments to an attorney.

What was the 1099-NEC threshold for tax year 2025?

IRS Publication 334 (2025) says: "File Form 1099-NEC, Nonemployee Compensation, for each person in the course of your business to whom you have paid at least $600 during the year in:" services by someone who isn't your employee, among other payments.

When is Form 1099-NEC due?

The IRS instructions (revised December 2026) say: "Section 6071(c) requires you to file Form 1099-NEC on or before January 31, using either paper or electronic filing procedures." If the date falls on a Saturday, Sunday or legal holiday, the instructions move it to the next business day.

Why collect a Form W-9 from a contractor?

The IRS General Instructions for Certain Information Returns (2025) say: "the IRS suggests that you request the recipient complete Form W-9, Request for Taxpayer Identification Number and Certification". They also say: "You may be subject to a penalty for an incorrect or missing TIN on an information return."

Do I report income if I don't receive a 1099?

IRS Publication 334 (2025) says: "You must report on your tax return all income you receive from your business, including income not reported to you on a Form 1099 filed by the payor, unless it is excluded by law."

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