Do I need to file a 1099? A six-step checklist
Go through these six questions for each person or business you paid in 2026. If every answer points to a 1099, you need to file one. The rules follow the IRS instructions for Forms 1099-MISC and 1099-NEC, revised December 2026.
- Did you pay it for your trade or business? Personal payments, such as a home repair, are not reportable. Nonprofits and government agencies count as being in a trade or business.
- Is the payee your employee? Then wages, bonuses and prizes go on Form W-2, not a 1099.
- Is the payee a corporation? C and S corporations, including LLCs taxed as one, usually need no 1099. The exceptions are lawyers and law firms, medical and health care providers, and a few others. Check the federal tax classification on the payee's W-9.
- What did you pay for? Services need a 1099-NEC. Rent, royalties, prizes, medical payments and legal settlements need a 1099-MISC. Merchandise, freight, storage and telephone need none. See 1099-NEC vs 1099-MISC.
- How did you pay? Payments by credit card, debit card or a payment app are reported by the payment company on Form 1099-K. Leave them out of your own 1099s.
- How much in total for the year? For 2026 the threshold is $2,000 for most payments. Royalties are $10, gross proceeds paid to attorneys $600, and any amount if you withheld federal tax. See the $2,000 threshold.
If the answer is yes
- Get a W-9 with the payee's legal name, TIN and tax classification. If a payee will not give a TIN, backup withholding applies.
- Send the recipient copy by February 1, 2027 for both forms. Boxes 8 and 10 on 1099-MISC are due February 16, 2027.
- File with the IRS. 1099-NEC is due February 1, 2027. 1099-MISC is due March 31, 2027 if e-filed. See all deadlines.
- E-file if you have 10 or more information returns of all types combined. The IRS IRIS portal is free.
Frequently asked questions
Do I need a 1099 for a contractor I paid $1,500 in 2026?
Not under the $2,000 threshold, unless you withheld federal income tax. You may still file one.
Do I need a 1099 for an LLC?
It depends on how the LLC is taxed. A single-member LLC that is disregarded, or an LLC taxed as a partnership, gets a 1099. An LLC taxed as a C or S corporation usually does not, unless it provides legal or medical services. The W-9 shows the classification.
I paid a contractor through PayPal. Do I send a 1099-NEC?
Payments made through a payment app or by card are reported by the payment company on Form 1099-K, not on your 1099-NEC.
Sources
- IRS: Instructions for Forms 1099-MISC and 1099-NEC
- IRS Publication 1099 (2026), General Instructions for Certain Information Returns
Last reviewed November 1, 2026.