1099-NEC and W-2: what to collect now

The deadline is almost three months away, but problems usually start when contractor details are missing in January.

Deadline

W-2 and 1099-NEC for 2026 are due January 31. In 2027 that is a Sunday, so the deadline moves to February 1.

New threshold

For 2025 payments, 1099-NEC was required from $600. For payments made from January 1, 2026, the threshold is $2,000.

Usually not required

Corporations, except attorneys. And payments by card or PayPal: the payment processor reports those on Form 1099-K.

W-9 before the first payment

The contractor's name, address and TIN. Without a W-9 you are required to withhold 24% (backup withholding).

What to collect now

• a list of payees and amounts by month;
• a W-9 from each;
• mailing addresses for the forms.

Late filing penalties apply per form and increase over time.

Not sure which contractors need a form? Message me "1099" and we'll go through your list.