It’s almost that time of year again — 1099 season! Before you start panicking and digging through piles of receipts, let’s go over a few quick reminders to make sure your 1099s are accurate and filed on time.
- What is a 1099?
A 1099 form reports payments made to individuals or businesses who are not your employees. This includes independent contractors, freelancers, service providers, and certain businesses. The IRS uses these forms to verify income reporting.
- Who needs a 1099?
You must issue a 1099-NEC if you paid $600 or more during the year for services performed by a person or business that is not on your payroll, including independent contractors, freelancers, and service providers such as bookkeepers, consultants, or maintenance professionals. While corporations generally do not require a 1099, attorneys must always receive one—even if they are incorporated—and payments made by credit card or third-party processors like PayPal or Stripe are reported by the processor on Form 1099-K, not by you. If you pay rent, you are also required to issue a 1099-MISC to any non-corporation you pay $600 or more in rent, and since many landlords are not corporations, you should already have a W-9 on file; if not, don’t wait until January—request it now. Remember not to include payments to corporations unless they involve legal or medical services, as those exceptions commonly catch businesses off guard.
- Gather your info early.
Make sure you have W-9 forms on file for everyone who qualifies. If you’re missing any, now’s the time to track them down — before the holidays hit and inboxes vanish into the void. And then were bugging you until you send it.
- Deadlines sneak up fast.
Both forms 1099-MISC & 1099-NEC is due to both the IRS and recipients by January 31, 2026. No extensions, no excuses. Start preparing now so you’re not sending frantic emails at midnight.
- Double-check your records.
Names, addresses, and taxpayer IDs must match IRS records exactly. A quick review now can save you a headache (and possible penalties) later.
If you’re unsure which forms you need to issue—or want help managing the entire process—Senter CPA is ready to assist. We make compliance simple and stress-free.
📞 Call us at 248-934-0550
🌐 Or contact us directly through our website.
