Do I need to file a 1099 for this contractor?
For payments made in 2026, you generally must file Form 1099-NEC when a business pays a non-employee $2,000 or more for services, up from $600 for 2025 payments. Payments to most corporations, and payments made by card or through payment apps, are generally not reported by you. Some states set their own thresholds.
About the payment
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Your result
Answer the questions to see whether you need to file a 1099, which form, and when it is due.
Remind me before the 1099 deadline
We'll email you before the February 1, 2027 deadline, with a W-9 checklist.
What are the 1099 thresholds for 2025 and 2026?
| Payment | Form | 2025 payments | 2026 payments |
|---|---|---|---|
| Non-employee services | 1099-NEC | $600 | $2,000 |
| Rent, prizes, medical payments | 1099-MISC | $600 | $2,000 |
| Gross proceeds paid to an attorney | 1099-MISC (box 10) | $600 | $600 |
| Royalties | 1099-MISC (box 2) | $10 | $10 |
| Card payments | 1099-K (filed by the card processor) | any amount | |
| Payment-app / platform payments | 1099-K (filed by the app or platform) | more than $20,000 and more than 200 transactions | |
The $2,000 threshold applies to payments made after December 31, 2025, and will be adjusted for inflation after 2026.
Tracking several contractors? Download the free Contractor Payment Tracker + 1099 Readiness Sheet.
Which states have their own 1099 rules?
States with a lower threshold than the federal $2,000 for 2026 payments, based on our research: Alabama ($1,500), District of Columbia ($600), Hawaii ($600), Mississippi ($600), Montana ($600), New Jersey ($1,000), Oklahoma ($750), Wisconsin ($600). In these states you may need to file directly with the state even when no federal 1099 is due.
| State | State 1099-NEC filing | State threshold | State due date | Source |
|---|---|---|---|---|
| Alabama | Yes | $1,500 | March 15 (no Alabama tax withheld); January 31 with Form A-3 if Alabama tax was voluntarily withheld | Source |
| Alaska | No state income tax | — | Not applicable | Source |
| Arizona | Only if state tax withheld | Follows federal | January 31 (with Form A1-R or A1-APR) | Source Re-verifying |
| Arkansas | Yes | $2,500 | January 31 | Source |
| California | Yes | Follows federal | To FTB: February 28 (paper) / March 31 (electronic) per FTB guide; recipient copy January 31 | Source |
| Colorado | Only if state tax withheld | Follows federal | Same as the IRS deadline: January 31 for 1099-NEC (1099-MISC: end of February paper / end of March electronic) | Source Re-verifying |
| Connecticut | Yes | Follows federal | January 31 | Source Re-verifying |
| Delaware | Yes | Follows federal | January 31 for 1099-NEC (TY2025: 2/2/2026); 1099-MISC due 3/2/2026 paper, 3/31/2026 electronic for TY2025 | Source |
| District of Columbia | Yes | $600 | January 31 | Source Re-verifying |
| Florida | No state income tax | — | Not applicable | Source |
| Georgia | Only if state tax withheld | Follows federal | January 31 for 1099-NEC with Georgia withholding (TY2026: February 1, 2027); other 1099s February 28 (TY2026: March 1, 2027) | Source |
| Hawaii | Yes | $600 | February 28 | Source Re-verifying |
| Idaho | Yes | Follows federal | Last day of February (Rule 830.03; Idaho Code s. 63-3037); Form 967 due last day of January | Source Re-verifying |
| Illinois | No | Follows federal | Not required for 1099-NEC/1099-MISC (Form 1099-K and W-2G due March 31 via Illinois FIRE; W-2 due January 31) | Source |
| Indiana | Only if state tax withheld | Follows federal | January 31 (with Form WH-3; next business day if it falls on a weekend) | Source Re-verifying |
| Iowa | Only if state tax withheld | Follows federal | February 15 (2/15/2026 for tax year 2025; one 30-day extension allowed if requested by February 15) | Source |
| Kansas | Yes | Follows federal | January 31 | Source |
| Kentucky | Only if state tax withheld | Follows federal | January 31 | Source |
| Louisiana | Yes | Follows federal | February 28 (1099-NEC); 1099s reporting Louisiana withholding go with Form L-3, due January 31 (February 2, 2026 for tax year 2025) | Source |
| Maine | Only if state tax withheld | Follows federal | January 31 (February 2, 2026 for tax year 2025 because January 31 fell on a Saturday) | Source Re-verifying |
| Maryland | Only if state tax withheld | Follows federal | January 31 | Source |
| Massachusetts | Yes | Follows federal | January 31 (1099-NEC and 1099-K); most other 1099s March 31 if e-filed or February 28 on paper | Source |
| Michigan | Yes | Follows federal | January 31 (1099-NEC); 1099-MISC: February 28 if paper-filed, March 31 if e-filed | Source |
| Minnesota | Only if state tax withheld | Follows federal | January 31 | Source |
| Mississippi | Yes | $600 | February 28 (paper and electronic 1099s) | Source Re-verifying |
| Missouri | Yes | Follows federal | February 28 (last day of February; next business day if on a weekend or federal holiday) | Source |
| Montana | Yes | $600 | January 31 (1099-NEC, with or without MT withholding; 1099s with MT withholding are due Jan 31 with Form MW-3). Other 1099s without withholding follow the federal due dates listed by MT DOR. | Source Re-verifying |
| Nebraska | Only if state tax withheld | Follows federal | January 31 (state copies of 2026 Forms 1099-MISC/1099-NEC and Form W-3N are due January 31, 2027) | Source Re-verifying |
| Nevada | No state income tax | — | Not applicable | Source |
| New Hampshire | No state income tax | — | Not applicable | Source |
| New Jersey | Yes | $1,000 | February 15 (NJ-WT and N.J.A.C. 18:35-8.1; next business day if on a weekend or holiday) | Source Re-verifying |
| New Mexico | No | Follows federal | Not required. If submitted voluntarily, NM's general due date for income and withholding statements is January 31. | Source |
| New York | No | Follows federal | Not applicable | Source |
| North Carolina | Only if state tax withheld | Follows federal | January 31 | Source |
| North Dakota | Yes | Follows federal | January 31 for 1099-NEC (ND due date equals the IRS due date; 1099s with ND withholding are due January 31) | Source |
| Ohio | Only if state tax withheld | Follows federal | January 31 (TY2025 forms were due February 2, 2026 because Jan 31 fell on a weekend) | Source Re-verifying |
| Oklahoma | Yes | $750 | January 31 for 1099-NEC (per secondary source; not confirmed on an OTC page) | Source Re-verifying |
| Oregon | Yes | Follows federal | January 31 for 1099-NEC (and W-2s); March 31 for 1099-MISC, 1099-R, 1099-G, 1099-K and W-2G | Source |
| Pennsylvania | Yes | Follows federal | January 31 | Source Re-verifying |
| Rhode Island | Yes | Follows federal | January 31 | Source Re-verifying |
| South Carolina | Only if state tax withheld | Follows federal | January 31 | Source |
| South Dakota | No state income tax | — | — | Source |
| Tennessee | No state income tax | — | — | Source |
| Texas | No state income tax | — | — | Source Re-verifying |
| Utah | Only if state tax withheld | Follows federal | January 31 | Source Re-verifying |
| Vermont | Only if state tax withheld | Follows federal | January 31 | Source Re-verifying |
| Virginia | Only if state tax withheld | Follows federal | January 31 | Source |
| Washington | No state income tax | — | — | Source |
| West Virginia | Only if state tax withheld | Follows federal | January 31 | Source |
| Wisconsin | Yes | $600 | January 31 (for 2026 payments: February 1, 2027 because January 31, 2027 is a Sunday; 2025 forms were due February 2, 2026) | Source |
| Wyoming | No state income tax | — | — | Source Re-verifying |
How does the 1099 checker decide?
- Business payment? Only payments made in the course of your trade or business are reported on 1099-NEC/MISC.
- Goods or services? Payments for goods and merchandise are generally not reported.
- How you paid: card payments and payment-app business payments are reported on Form 1099-K by the payment company, so you don't also report them on a 1099-NEC/MISC.
- Who you paid: payments to corporations are generally exempt, except attorneys' fees, gross proceeds paid to attorneys and medical/health care payments.
- How much: the total for the year is compared with the federal threshold for that payment type and year ($2,000 for 2026 services, rent, prizes and medical payments; $600 for 2025; $10 for royalties; $600 for gross proceeds to attorneys).
- State rules: your state's (and the payee's state's) rules come from our state research table below, with sources.
Due dates for 2026 payments: 1099-NEC to the contractor and the IRS by February 1, 2027; 1099-MISC to recipients by February 1, 2027, to the IRS by March 1, 2027 on paper or March 31, 2027 electronically.
Not covered: backup-withholding amounts, fishing-boat proceeds, direct sales of consumer products and other less common boxes; payments to foreign contractors (Form 1042-S rules instead).
Worked examples
Results produced by this checker.
| Situation | Federal threshold | File a 1099? |
|---|---|---|
| Web designer (sole proprietor) paid $1,800 by bank transfer in 2026 | $2,000 | No: below threshold |
| Bookkeeper (single-member LLC) paid $2,400 by check in 2026 | $2,000 | Yes: 1099-NEC (box 1a) |
| Law firm (corporation) paid $5,000 in legal fees in 2026 | $2,000 | Yes: 1099-NEC (box 1a) |
| Contractor paid $9,000 through a card processor in 2026 | — | No: the processor reports it on 1099-K |
| Same web designer, but paid $1,800 in 2025 | $600 | Yes: 1099-NEC (box 1a) |
These examples are generated by running this calculator's own code with the figures on this page, so they always match what the tool shows.
Frequently asked questions
What is the 1099 threshold for 2026?
For payments made in 2026, the Form 1099-NEC and most 1099-MISC thresholds are $2,000. For payments made in 2025 they were $600. Royalties ($10) and gross proceeds paid to attorneys ($600) did not change.
Do I need to send a 1099 to an LLC?
Usually yes, unless the LLC has elected to be taxed as a C or S corporation. A single-member LLC that is disregarded for tax purposes, or a multi-member LLC taxed as a partnership, is not exempt. The LLC's Form W-9 shows its tax classification.
Do I file a 1099 if I paid a contractor through PayPal or a credit card?
Generally no. Those payments are reported on Form 1099-K by the payment company. Card processors report card payments regardless of amount. Payment apps and platforms such as PayPal (third-party settlement organizations) generally report when the contractor received more than $20,000 and more than 200 transactions in the year.
Do I need a 1099 for Zelle payments?
Zelle moves money directly between bank accounts and is not treated like a card processor or payment app. Payments you make to a contractor through Zelle are generally yours to report on Form 1099-NEC if they meet the threshold.
When are 1099s due in 2027?
For payments made in 2026, Form 1099-NEC is due to the contractor and the IRS by February 1, 2027. Form 1099-MISC is due to recipients by February 1, 2027, and to the IRS by March 1, 2027 on paper or March 31, 2027 if filed electronically.
Do I have to e-file my 1099s?
If you file 10 or more information returns in total during the year (counting all types, such as W-2s and 1099s together), you generally must file them electronically.
What if the contractor won't give me their TIN?
You generally must start backup withholding at 24% on reportable payments until you receive a valid TIN on Form W-9.
Disclaimer: This tool provides general estimates for educational purposes and is not tax, legal or accounting advice. Results depend on facts not captured here. Consult a qualified professional before acting.
Sources
- law.cornell.edu: https://www.law.cornell.edu/uscode/text/26/6041
- law.cornell.edu: https://www.law.cornell.edu/uscode/text/26/6050W
- irs.gov: https://www.irs.gov/pub/irs-pdf/i1099mec.pdf
- irs.gov: https://www.irs.gov/pub/irs-pdf/p1099.pdf
