Essential 1099 Filing Guide for 2025: Deadlines and Requirements
Every January brings the start of 1099 filing season, and it continues to be an important compliance task for business owners. Even though the 1099-NEC is no longer “new,” many business owners still have questions about which form to use and how to file everything correctly. Today’s article will review the details to help you avoid errors and costly penalties.
What Is a Form 1099?
A Form 1099 is used to report certain types of payments made in the course of your trade or business. In most situations, you must issue a 1099 when you pay $600 or more to a non-incorporated individual or partnership for services performed for your business. You do not issue a 1099 if:
· The worker is your employee
· Total payments for the year are under $600
· Payments were made by credit card or through a third-party processor such as PayPal, Stripe, or Square
Payments made through these third-party processors are reported separately on a 1099-K, which the processors issue directly.
1099-NEC vs. 1099-MISC
Form 1099-MISC was the main one used for many years, but the IRS created Form 1099-NEC for reporting nonemployee compensation beginning with the 2020 tax year. At this point, both forms are well established, yet it’s still essential to understand the difference:
· 1099-NEC: Reports nonemployee compensation, such as payments to independent contractors or other service providers who are sole proprietors or partnerships.
· 1099-MISC: Covers all other miscellaneous payments previously reported on this form, including rent (Box 1), royalties, and other categories that are not considered contractor compensation.
Note there are exceptions to corporations not having to receive a 1099. The two that may be applicable to you would include payments to an attorney or for medical/health payments.
How to File Your 1099 Forms
This year’s deadlines are:
· 1099-NEC: Due to both recipients and the IRS by February 2. Forms are usually due on January 31, but because this is a Saturday in 2026, you have until the following Monday to be considered timely.
· 1099-MISC: Due to recipients by February 2nd , and due to the IRS on March 2 (February 28 is a Saturday) if filing on paper or March 31 if filing electronically.
To prepare your filings accurately, make sure you have a Form W-9 on file for each vendor. The W-9 provides their legal name, address, tax ID number, and entity type. Once you have this information, your accounting software can typically track and generate the required forms for you. You can choose to purchase paper forms or file electronically using various software platforms.
Want a simple guide to make 1099 season easier?
To help you understand the process to be able to file information returns on time and accurately, I have created a document to explain which form to use for specific types of payments, when they are due to recipients and the IRS, and how to make corrections once forms have been filed, if necessary. You can download it here: https://bit.ly/1099yic
Need Help With Your 1099s?
If reporting compensation on Forms 1099-NEC or 1099-MISC feels confusing or time-consuming, support is available. My team is here to help you stay compliant and avoid unnecessary stress. Contact us at 310-534-5577 or contact@abandp.com today for assistance.
