1099 Season: What to File and When

January is short, and the contractor filing deadline lands at the end of it. Preparation in the first two weeks makes the rest routine.

Who gets a 1099-NEC

Generally, any unincorporated contractor, freelancer, or service provider you paid $600 or more during the year by cash, check, or bank transfer. Payments made through card processors and most payment apps are reported by those platforms instead.

Confirm W-9s before you file

The legal name, address, and taxpayer ID must match what the IRS has on record. Mismatches generate notices months later, long after the contractor has stopped answering email.

Verify the totals in your file

Pull a vendor report for the year and compare it against your bank activity. Payments coded to the wrong vendor are the most common source of a wrong 1099.

Deliver copies and file on time

Recipients and the IRS both need their copies by January 31. Late filings carry per-form penalties that scale with how late they are.