# 1099-NEC & 1099-MISC Filing

> US businesses file Form 1099-NEC for each US non-employee contractor paid $2,000 or more for services in 2026 — the threshold rose from $600 for payments made after 2025. It is due to both the contractor and the IRS by 31 January. Collect a Form W-9 from each US contractor before paying; foreign contractors give Form W-8BEN instead and don't receive a 1099. Payment-platform reporting on Form 1099-K uses the $20,000 and 200-transaction thresholds.

Practice: US Accounting, Payroll & Sales Tax — https://www.industax.com/services/us-accounting-compliance/

Missing W-9s are the main reason 1099s are late or wrong. We set up W-9 collection with onboarding, track payments by vendor, and e-file 1099s.

Payments made by card or through payment platforms are reported by the platform on 1099-K rather than by you on 1099-NEC.

## Key facts

| Item | Detail |
| --- | --- |
| 1099-NEC threshold | $2,000 for payments in 2026 (was $600) |
| Due | 31 January to recipients and IRS |
| US contractors | Form W-9 |
| Foreign contractors | Form W-8BEN; no 1099 |
| 1099-K | $20,000 and 200 transactions |

## Who needs this

- US companies paying contractors
- Foreign-owned US LLCs with US vendors
- Startups paying freelancers

## What's included

- W-9/W-8 collection
- Vendor payment tracking
- 1099 e-filing

## Documents

- Vendor list and payments
- W-9s and W-8BENs

## Process

1. **Collect** — W-9s and W-8s gathered.
2. **Track** — Payments totalled per vendor.
3. **File** — 1099s issued and e-filed by 31 January.

## FAQs

### Do I file a 1099 for an Indian freelancer?

No. Foreign contractors working outside the US provide Form W-8BEN, and payments to them aren't reported on 1099-NEC.

### Is the $2,000 threshold permanent?

It applies to payments made after 31 December 2025 and is indexed for inflation from 2027.

### What is the penalty for late 1099s?

Penalties apply per form and rise with the length of the delay, with higher penalties for intentional disregard.

## Official sources

- IRS — Forms 1099-NEC and 1099-MISC: https://www.irs.gov/forms-pubs/about-form-1099-nec

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Canonical page: https://www.industax.com/services/us-accounting-compliance/form-1099-nec-filing
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.