If you work with independent contractors, the deadline to send them Form 1099-NEC is just days away.
For the 2025 tax year, Form 1099-NEC must be sent both to your contractors and filed with the IRS no later than February 2, 2026. The standard deadline is January 31, but since that date falls on a Saturday this year, it moves to the next business day.
If you paid any individual contractor $600 or more during 2025, you are required to issue them a 1099-NEC and submit a copy to the IRS. This applies to sole proprietors, partnerships, and most individuals but generally not to payments made to corporations, with some exceptions such as legal services.
Who needs a 1099-NEC?
If you hired anyone as an independent contractor during 2025 and paid them $600 or more for the year, they need a form. It does not matter whether you paid by check, cash, Zelle, or Venmo. What matters is the total amount paid during the calendar year.
Payments made through credit cards or third-party payment processors like PayPal or Stripe are typically reported on Form 1099-K by the processor, not on a 1099-NEC by you. But if you are not sure which applies in your situation, it is worth double-checking before the deadline.
What you need to have ready:
Each contractor should have a completed W-9. Without accurate W-9 information, you cannot file a correct 1099-NEC, and filing an incorrect form can result in IRS notices and potential penalties.
What happens if you miss the deadline?
Penalties for late filing start at $60 per form and increase the longer you wait. There is no automatic extension for Form 1099-NEC, so the February 2 deadline is firm.
A few things to keep in mind: Make sure your contractor information is accurate and your W-9 forms are on file before the deadline arrives. If you’re missing a W-9, contact your contractor now while there’s still time.
If you need help preparing and filing your 1099s, we handle the entire process so nothing is missed and everything goes out on time.
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