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Who Needs a 1099 Before the Year Ends?
Every January I hear the same question. “I paid someone. Do I have to give them a 1099?” For 2026 the rule changed, and October is a better time to look at it than January.
If you paid $2,000 or more in 2026 to someone who is not your employee, for work done for your business, you most likely need Form 1099-NEC. Before 2026, the floor was $600. Add up every payment to that same person for the whole year. Do not look at one check by itself.
An employee does not get a 1099. An employee gets Form W-2. The 1099 is for someone who provided a service and is not on your payroll: a technician, a designer, or the person who remodeled or repaired your space.
Ask for Form W-9 before you pay. That is the legal name, the address, and the taxpayer ID. Without it, you cannot complete the form in January.
A corporation is often exempt. Payments to an attorney generally are not. And if you withheld backup withholding, you file a 1099 even when the payment is under $2,000.
You give the form to the person and you file it with the IRS. The usual date is January 31.
This week, make a short list. Name, how much you paid in 2026, and whether you already have the W-9. If someone is close to $2,000, do not wait until December to ask for their information.
This is general information, not advice for your situation. If you want a second look at the list before January, write to us.
Lifaver Trujillo, CPA, PLLC
☎ (919) 590-3610
🏠 4804 Page Creek Lane, Suite 114, Durham, NC 2770
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