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1099 checker: does this contractor need a 1099-NEC for 2026?
For payments made in 2026, send a Form 1099-NEC to each contractor you paid $2,000 or more by bank transfer, check or cash, unless they are a corporation. Lawyers get one even when their firm is a corporation, and rent of $2,000 or more goes on Form 1099-MISC. Card and PayPal payments are reported by the card company or app on Form 1099-K instead. Forms are due to contractors and the IRS by February 1, 2027.
One payee, all of 2026
Do you send a 1099?
Yes: 1099-NEC
Payments of $2,000 or more for services to a payee that isn't a corporation go in box 1 of Form 1099-NEC.
- Box
- Box 1
- Copy to the payee by
- February 1, 2027
- To the IRS by
- February 1, 2027
Ask every new payee for a Form W-9 before you pay them. It gives you their legal name, tax ID and tax classification, which is what this answer depends on.
- Threshold per payee, up from $600
- $2,000
- Due to contractors and the IRS
- Feb 1, 2027
- The threshold for 2025 and earlier payments
- $600
How it's calculated
- The threshold is $2,000 for payments made after December 31, 2025, up from $600, under the One Big Beautiful Bill Act. It will rise with inflation from 2027.
- Payments to a corporation, or an LLC taxed as one, are exempt, except fees for legal services. A single-member LLC counts as its owner unless it chose to be taxed as a corporation; its W-9 says which.
- Card, PayPal and other payment-app payments are reported by the processor on Form 1099-K, so you leave them out. Wages go on Form W-2, and goods are not reported.
- Form 1099-NEC is due to the payee and the IRS by February 1, 2027, because January 31 is a Sunday. Form 1099-MISC is due to the payee by February 1 and to the IRS by March 31, 2027 if you file electronically (March 1 on paper).
Questions founders ask
What is the 1099-NEC threshold for 2026?
$2,000 per payee for payments made in 2026, up from $600 in 2025 and earlier. The One Big Beautiful Bill Act raised it, and it will be adjusted for inflation from 2027.
Do I send a 1099 to an LLC?
It depends on how the LLC is taxed. A single-member LLC or one taxed as a partnership gets a 1099; an LLC taxed as an S or C corporation doesn't, unless you paid it for legal services. Ask for a W-9 to find out.
Do I need a 1099 if I paid by credit card or PayPal?
No. Payments by card or through a payment app are reported by the processor on Form 1099-K, so you don't include them.
When are 1099s due in 2027?
Form 1099-NEC is due to contractors and the IRS on Monday, February 1, 2027. Late forms cost $60 each if filed within 30 days, and more after that.