Year-end and 1099s
1099 collection checklist for year end
Business clients owe you three things at year end: a list of the people they paid, a W-9 from each new contractor, and the payroll and year-end counts that close the books. This checklist covers payments made during the calendar year. The sooner the vendor list and W-9s arrive, the more time there is to chase missing details before the deadline.
Who sends itSent to each business client in December, while the year's payments are still being recorded. The deadline for most Forms 1099-NEC and 1099-MISC is January 31 of the following year.
0 of 25 ticked
01People you paid this year
02Payroll and owners
03Year-end counts and purchases
04Filing details and records
What firms get wrong
- Waiting for January to ask for W-9s. The W-9 should arrive before the first payment, while the contractor is still easy to reach.
- Using the old $600 threshold for 2026 payments. The federal threshold is $2,000 per payee for most 1099-NEC and 1099-MISC payments.
- Assuming every vendor is a corporation. Ask for the entity type on the W-9 instead of guessing from the name.
- Missing payments made through a payment app that the business also paid by check, which can split one vendor across two reporting methods.
- Sending a 1099 without checking the recipient's address and tax ID first, which leads to a correction later.
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Questions about this checklist
When are 1099s due?
Forms 1099-NEC and 1099-MISC for payments made in 2026 are due January 31, 2027. Because January 31, 2027 is a Sunday, the deadline moves to Monday, February 1, 2027. Other 1099 forms have different due dates, so check the instructions for each form.
What is the 1099 threshold for 2026 payments?
For payments made in 2026, the threshold for Forms 1099-NEC and most 1099-MISC payments is $2,000 per payee for the year, up from $600 for earlier payments. Some payments keep their own rules, such as gross proceeds to attorneys and royalties. Check the current IRS instructions before you file.
Do I have to send a 1099 to a corporation?
Generally no. Payments to corporations are usually excluded from Form 1099-NEC, but payments for legal services are an exception. If a payee's status is unclear, ask your firm before filing.
Do payments made by credit card need a 1099-NEC?
Usually not. Payments made by credit card, debit card or a payment app are generally reported by the payment company on Form 1099-K, so the business does not issue a 1099-NEC for them.
What should I do if a contractor will not send a W-9?
Tell your firm in the final note and keep a record of each request. Without a W-9, the business may need to withhold backup tax from future payments to that contractor, so ask your firm before paying them again.
Sources
- IRS: Am I required to file a Form 1099 or other information return
- IRS: Instructions for Forms 1099-MISC and 1099-NEC
- IRS: About Form W-9
Checked November 3, 2026. Tax rules, forms and thresholds change; confirm them with the IRS or your tax software before relying on them.
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