Did You Pay Contractors in 2026? Your 1099-NEC Deadline Is February 1, 2027
If you own a business and paid independent contractors during 2026, there's another tax deadline you need to have on your radar.
You may need to file Form 1099-NEC to report what your business paid those contractors.
Never filed one before? Here's what that actually means.
What Is a 1099-NEC?
Form 1099-NEC stands for Nonemployee Compensation.
In simple terms, it's a form used to report certain payments your business made to someone who performed services for your business but wasn't your employee.
And here's something that's easy to misunderstand:
You generally prepare a separate 1099-NEC for each contractor who meets the reporting requirements.
So, if three of your contractors require a 1099-NEC, you're generally preparing three separate forms, one for each contractor.
The 1099-NEC Threshold Changed for 2026
For payments made during 2026, the federal reporting threshold for certain nonemployee compensation increased from $600 to $2,000.
That means if your business paid a contractor at least $2,000 for qualifying services during 2026, you'll want to review those payments to determine whether a Form 1099-NEC is required.
“But My Business Is Small. Do I Still Have to File?”
Possibly and this is important because there isn't a minimum amount your business has to make before the 1099-NEC rules can apply.
Your business doesn't have to make $50,000, $100,000 or $1 million before you have to worry about 1099 reporting.
Instead, we're generally looking at what your business paid the contractor, not how much your business made.
For example, your business could make only $20,000 during 2026 but pay a contractor $3,000 for qualifying services. The fact that you're a very small business doesn't automatically remove your potential 1099 filing responsibility.
How Did You Pay the Contractor?
Here's another important question:
How did you pay them?
A 1099-NEC isn't simply a form for contractors you paid with physical cash.
Certain direct payments made by your business may be subject to 1099-NEC reporting. However, payments processed through credit cards and qualifying third-party payment networks may fall under Form 1099-K reporting instead.
In those situations, the payment settlement entity may be responsible for reporting the payment rather than your business reporting that same transaction on Form 1099-NEC.
So don't just ask:
“How much did I pay my contractor?”
Also ask:
“How did I pay my contractor?”
Don't Forget the W-9
Before filing a contractor's 1099, you'll need the correct information for that contractor. That's where Form W-9 comes in.
An easy way to remember the difference is: The contractor gives your business the W-9. Your business uses that information when preparing the contractor's 1099, if one is required.
Ideally, collecting a W-9 should be part of your process when you first hire a contractor, not something you're scrambling to get in January.
When Is the Deadline?
For qualifying contractor payments made during 2026, the Form 1099-NEC filing deadline is:
Monday, February 1, 2027.
Form 1099-NEC is normally due January 31. Since January 31, 2027 falls on a Sunday, the deadline moves to the next business day.
That may sound far away, but January gets here quickly.
Start Getting Organized Now
You don't have to wait until filing season to start preparing.
Before year-end, review:
Who performed services for your business?
How much you paid each contractor?
How you paid each contractor?
Whether you have an accurate W-9 on file?
Which contractors and payments may require a 1099?
The goal is simple: don't spend January trying to recreate an entire year from bank statements, payment apps, emails and text messages.
Your records should already tell the story.
Want to Learn More About the 1099-NEC Deadline?
Tax1099 has additional information about the upcoming filing deadline and Form 1099-NEC requirements.
Read the Tax1099 filing deadline guide:
Ready to File Your 1099s?
If you're comfortable preparing your own 1099s, TaxCity Advisors has partnered with Tax1099, an online platform that allows businesses to prepare and electronically file information returns.
File your 1099s with Tax1099 through Tax City Advisors:
Don't wait until the deadline.
Get organized now, understand what your business needs to report, and make filing season easier on yourself.
Disclosure: Tax City Advisors may earn a commission if you sign up through our Tax1099 partner link.
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