What You Need to Know About 1099s This Season

If you’ve paid contractors, freelancers, or service providers this year, it’s time to start thinking about 1099s. These IRS forms aren’t just paperwork, they’re your proof of compliance. And this season, there are a few updates you’ll want to know.

What’s a 1099?

A 1099 is an IRS form used to report payments made to non-employees. The most common types include:

• 1099-NEC: For independent contractors

• 1099-MISC: For rents, royalties, and prizes

• 1099-K: For payments processed through platforms like PayPal or Etsy

If you’ve paid someone $600 or more for services, you may need to issue a 1099, unless they’re a corporation. But here’s the catch: not all LLCs are taxed as corporations. That’s why collecting a W-9 is essential.

What’s New?

• Thresholds: The $600 threshold still applies for 2025, but it’s rising to $2,000 in 2026.

• 1099-K: You’ll only receive one if you’ve had $20,000 in payments and 200 transactions.

• E-filing: If you’re filing 10 or more forms, you must file electronically.

What to Do Now

1. Collect W-9s from anyone you’ve paid

2. Review your payments to see who qualifies

3. Set internal deadlines to avoid last-minute stress

Final Thoughts

1099s aren’t just about IRS rules; they’re about protecting your deductions and showing you run a clean, ethical business. Help your audience prep early with branded checklists and easy-to-follow guides.

Source: Gift CPAs 2025 1099 Filing Guide

Legal Disclosure:

CompliantHer™ program of (Relannford Enterprises LLC) is not a law firm. This document is intended for educational and informational purposes only and does not provide medical, legal, or financial advice. If you have questions about your specific situation, please consult a physician, attorney, or accountant licensed to practice in your state and/or country.

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