By Ben Witters, CPA
Year-end is busy enough without last-minute paperwork. A little prep now can make your 1099 filing one of the easiest items on your January to-do list.
The 1099 rules got easier this yEAr
Good news for business owners: starting with 2026 payments, you only need to file a 1099-NEC or 1099-MISC for a vendor you paid $2,000 or more, up from $600. That means fewer forms for many of you this January.
Fewer forms doesn't mean no prep, though. A little housekeeping now, while the year is still open, keeps your filing quick and calm in January 2027. Here's what changed, who still needs a 1099, and how we can take it off your plate.
does this vendor need a 1099?
It comes down to two questions: how you paid them and what kind of business they are.
| Who You Paid | ||
|---|---|---|
| How You Paid | Individual, sole proprietor, partnership, LLC (not taxed as a corporation), or attorney (any entity) | Corporation (C or S Corp, or LLC taxed as one) |
| Check, ACH or bank transfer, Zelle, wire, cash, or PayPal/Venmo "Friends & Family" | Yes, 1099 required if $2,000+ | No 1099 |
| Credit card, debit card, or PayPal/Venmo "Goods & Services" | No 1099 (processor issues a 1099-K) | No 1099 |
A few things to keep in mind:
The $2,000 is the vendor's total for the year from the payment methods in the first row. Leave out credit/debit card and Goods & Services payments when you add it up.
Attorneys get a 1099 even if their firm is a corporation.
Not sure which column a vendor belongs in? Their W-9 tells us.
Keep collecting w-9s from every vendor
Even with the higher threshold, get a signed W-9 from every vendor before you pay them the first time. You rarely know in advance who will cross $2,000, and a missing tax ID can trigger 24% backup withholding.
A W-9 gives us each vendor's legal name, entity type, address, and tax ID, which is everything we need for an accurate 1099. The easiest habit: make a signed W-9 part of onboarding any new vendor.
The IRS also updated Form W-9. In some cases, sole proprietors and single-member LLCs should now give the owner's Social Security number instead of the business EIN. If you're using an older W-9 template, swap it for the current form.
dates to put on your calendar
December 1: Let us know if you would like us to prepare and file your 1099s
December 31: Send our team all of your vendor W-9s
February 1: 1099-NEC due to recipients and the IRS; 1099-MISC due to recipients
March 31: 1099-MISC due to the IRS (e-file)
let us handle your 1099s
You've got a business to run. Infinity Wealth Tax Services (IWTS) can prepare and e-file your 1099s for you, and we'll flag any W-9s you still need to collect along the way. Space is limited, so reach out by December 1, 2026 to reserve your spot.
Questions about a specific vendor or payment? Call us at 913-827-0590. We're glad to walk through it with you.
This article is for general informational purposes only. We assume no liability for laws and regulations that are enacted after the date of this blog.