The clock is ticking! The deadline to file 1099-NEC forms for non-employee compensation is January 31st.
If you paid $600 or more last year to vendors such as freelancers, attorneys, and anyone providing you services, then it’s time to get those forms filed. They are required to be submitted to both the IRS and your contractors by the deadline to stay in the clear.
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Keep in mind that payments made by credit card, are excluded from your reporting. That’s because payment processing companies have their own 1099s to issue for those. If you are inclined for a change in 2025, you could pay everyone by credit card, incur points, and then not have to worry about 1099s come next January.
Make sure you obtain a Form W9 from your vendors to ensure you have accurate information for completing a 1099. Make sure you double-check all the details on the form as a simple mistake can lead to headaches. Good news — if a vendor’s W-9 shows they’re a corporation, you typically don’t need to issue a 1099. However, there’s one exception: corporations still require a 1099 for legal services.
Verify all of the details on the 1099 forms as a simple error, such as a misspelled name or wrong EIN or Social Security Number, could be rejected from the IRS, result in an IRS notice, and overall become a headache for both you and the recipient.
Remember, there are different types of 1099 forms with unique rules and thresholds, so make sure you’re using the right one. For all the details, visit IRS.gov or connect with your trusted tax advisor.
Still have questions? Alloy Silverstein has got you covered. Head to the Resources section of our website for more tips and tools to stay compliant.
Start this tax season stress-free and ahead of the game. Get those 1099s filed on time — your business will thank you later.
Related Form 1099 Resources:
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Chris provides accounting, tax planning, and consulting services to professional athletes, family entertainment centers, and other businesses in the amusement and hospitality industry. He also aids clients in implementing cloud accounting solutions.
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