If you paid an independent contractor $2,000 or more in 2026, you probably need to send them a 1099-NEC — and the form is due February 1, 2027. The old $600 threshold is gone. If you paid someone less than $2,000, or you paid by credit card, you generally don't need to file one for that payment.
The threshold changed — here's what happened
For years, the rule was simple: pay a contractor $600 or more, send a 1099-NEC. For 2026 payments, that threshold moved to $2,000 under the One Big Beautiful Bill Act, signed July 4, 2025. This is the first year the $2,000 threshold applies, which is why so many small business owners are unsure where they stand.
Who counts — and who doesn't
You generally need a 1099-NEC for unincorporated contractors you paid for services: individuals, sole proprietors, single-member LLCs, and partnerships. You generally do not need one for corporations, or for payments you made by credit card or a payment app — those are reported on a 1099-K by the payment processor, not by you.
When are they due?
February 1, 2027. January 31 falls on a Sunday in 2027, so the deadline moves to Monday, February 1 — both to the contractor and to the IRS.
The W-9 problem (fix it now, not in January)
If you don't have a contractor's W-9 — their legal name, address, and taxpayer ID number — you're supposed to withhold 24% of their pay as backup withholding. The time to collect W-9s is before you pay someone, not when you're scrambling in January. If any of your 2026 contractors still haven't given you one, ask now.
What to do now
1. List everyone you paid for services in 2026.
2. Add up what each person received.
3. Flag anyone at $2,000 or more.
4. Collect any missing W-9s.
5. Check how you paid — card and app payments don't need a 1099-NEC from you.
Quick answers
Do I need a 1099 if I paid a contractor $1,500? No — that's under the $2,000 threshold for 2026. Keep the records anyway.
I paid by credit card. Do I still file? No. The card company reports that payment on a 1099-K.
What if I miss the February 1 deadline? Penalties apply and grow the later you file. File as soon as you can rather than waiting for next year.
Not sure whether someone on your list needs one?
Book a free 30-minute consultation and we'll go through your list together before the deadline. Evening appointments available — 5:00, 5:45, or 6:30.