Happy Friday, all!
We’re deep in the season of spreadsheets, W-9s, and last-minute email chains—aka 1099 time. If you’re a business owner who works with contractors, now is the time to finalize and file your 1099-NEC forms. The official deadline this year is February 2, 2026, giving us a tiny bit of breathing room since January 31 falls on a Saturday.
I’ve been in 1099 mode ever since the estimated tax deadline passed. For many of my clients, January becomes a mad dash to gather contractor payments, check addresses, and confirm that every W-9 on file is complete and accurate. While the process can feel tedious, getting your 1099s done right is a key part of running a financially responsible and compliant business.
So what is the 1099-NEC, and who needs to file it?
The 1099-NEC is used to report payments made to non-employees, like independent contractors or freelancers. If you paid someone $600 or more for services in 2025 and they aren’t classified as an employee, you likely need to send them a 1099-NEC. This includes:
- Virtual assistants
- Graphic designers
- Copywriters
- Coaches or consultants
- Bookkeepers or accountants (if they aren’t incorporated)
You don’t need to file for vendors who are registered as S-Corps or C-Corps (except for attorneys—they’re the exception to nearly every rule). The best way to know? Check their W-9 form.
Tips for Smooth Filing:
- Gather W-9s early – Don’t wait until January. Make it standard to request a W-9 before sending the first payment.
- Use secure software – Platforms like QuickBooks, Yearli, or Track1099 can help you generate, e-file, and deliver 1099s quickly.
- Double-check details – A mistyped name or Tax ID can cause headaches later. Review all entries before filing.
Getting your 1099s squared away is one of those unglamorous but vital parts of running a mission-driven business. It signals that you take your finances seriously and honor your role as a leader and payer in your community.
Questions of the Week
- Who did I pay more than $600 for services last year, and do I have their up-to-date W-9?
- How can I streamline my contractor onboarding process to include tax forms from the start?
- What systems or tools could I implement now to make next January less stressful?
Tool of the Week
The IRS 1099-NEC Instructions are surprisingly straightforward and worth a bookmark. They walk you through who gets a form, how to fill it out, and how to file it. Whether you’re filing yourself or want to understand the process better, it’s a great reference point.
You’ve got this. A little prep now saves a lot of stress later. Let this be the year 1099s don’t sneak up on you!
Best,
Brian