Ask Maxi · Deductions
Do I have to send 1099s this year?
Only if you paid an unincorporated contractor $2,000 or more for business services during 2026. The old $600 threshold went away for payments made after December 31, 2025, so a lot of people who sent 1099s last year will not need to this year.
A few things that trip people up:
- The threshold counts the whole year, not one invoice. Twelve $200 payments to the same person is $2,400, and that one gets a form.
- Payments by credit card or through a third-party network are reported by the processor, not by you. Do not send a 1099-NEC for those.
- Lawyers get a form whether or not they are incorporated.
- Rent, prizes and royalties ride on different forms and different thresholds.
The deadline for 2026 payments is February 1, 2027, because January 31 lands on a Sunday. You need a W-9 from every contractor before you can file, which is why we tell clients to collect the W-9 before the first check goes out, not in January when nobody answers the phone.
Not sure who crossed the line? Pull your vendor payments for the year and sort by total. That list is your answer.
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