Deadline AlertTax Year 2025 Filing

1099-NEC Deadline 2026

The 1099-NEC filing deadline for tax year 2025 is January 31, 2026. Since that's a Saturday, you have until Monday, February 2, 2026. There are no extensions available.

1099-NEC Due Date

February 2, 2026

Both to recipients AND to IRS

Generate 1099-NEC Now

Same Deadline

Recipient copies AND IRS filing due same day

No Extensions

Unlike Form 1040, you can't extend 1099-NEC

$600 Threshold

Only required for payments of $600 or more

Who Needs to File 1099-NEC?

You must file Form 1099-NEC if you paid $600 or more to any of the following during 2025:

MUST FILE

Freelancer or contractor paid $600+ for services

MUST FILE

Attorney paid $600+ (even if incorporated)

MUST FILE

Individual landlord paid $600+ in rent

MUST FILE

Prize or award winner paid $600+

NOT REQUIRED

Payments to corporations (except attorneys)

NOT REQUIRED

Payments for merchandise or goods

NOT REQUIRED

Payments via credit card/PayPal (they issue 1099-K)

NOT REQUIRED

Payments to employees (use W-2 instead)

Late Filing Penalties

The IRS takes 1099-NEC deadlines seriously. Here's what you'll pay if you're late:

Within 30 days of deadline

$60 per form

More than 30 days late, but by August 1

$120 per form

After August 1

$310 per form

Intentional disregard

No maximum penalty cap!

$630 per form

⚠️ Real Example: Late Filing Costs

Let's say you paid 5 contractors in 2025 and file your 1099-NECs on March 15, 2026 (about 6 weeks late):

5 forms × $120 penalty (30+ days late)$600

Total penalty for being 6 weeks late$600

How to File 1099-NEC (Step by Step)

Collect W-9s from All Contractors

Before you can file a 1099-NEC, you need each contractor's legal name, address, and Tax ID (SSN or EIN). The W-9 form collects all this information.

Generate W-9 forms →

Calculate Total Payments

Add up ALL payments made to each contractor during 2025 (January 1 - December 31). Include payments by check, bank transfer, cash, or other direct methods. Exclude payments made through PayPal, Venmo, or credit card processors.

Generate Your 1099-NEC Forms

Create the 1099-NEC form with your business info (as payer) and the contractor's info (as recipient). Enter the total amount paid in Box 1.

Generate 1099-NEC forms →

Send Copy B to Contractors

Mail or deliver Copy B to each contractor by February 2, 2026. Contractors need this to file their own taxes. Keep proof of delivery.

File with the IRS

Submit Copy A to the IRS by February 2, 2026. If filing 10+ forms, you must e-file. Use IRS FIRE system or an approved e-file provider. Include Form 1096 as a cover sheet if mailing.

Common 1099-NEC Mistakes to Avoid

Using the Wrong Tax ID

If the SSN/EIN doesn't match IRS records, you'll receive a B-Notice and may face penalties. Always verify with a W-9 before paying contractors.

Double-Counting Credit Card Payments

If you paid a contractor via PayPal, Stripe, or credit card, DON'T include those amounts. The payment processor will issue their own 1099-K.

Filing 1099-NEC for Corporations

Most corporations don't need a 1099-NEC. The exception: attorneys and law firms ALWAYS get a 1099-NEC regardless of corporate status.

Forgetting to File with State

Many states require you to file 1099s with them too. Check your state's requirements— some participate in the Combined Federal/State Filing Program, others don't.

Frequently Asked Questions

What is the 1099-NEC deadline for 2026?

The 1099-NEC deadline for tax year 2025 is January 31, 2026. Since January 31 falls on a Saturday, the actual deadline is Monday, February 2, 2026. This deadline applies to both sending copies to recipients AND filing with the IRS.

Can I get an extension for filing 1099-NEC?

No, there is NO automatic extension available for Form 1099-NEC. Unlike individual tax returns, you cannot simply file for more time. The only exception is if you can demonstrate extraordinary circumstances or hardship by filing Form 8809, but these are rarely approved for 1099-NEC.

What happens if I file my 1099-NEC late?

Late filing penalties range from $60 per form (within 30 days) to $310 per form (after August 1). If the IRS determines intentional disregard, penalties jump to $630 per form with no maximum. For example, if you're 2 months late on 10 forms, that's $1,200 in penalties.

Do I need to send a 1099-NEC if I paid via PayPal or Venmo?

Generally no. Payment processors like PayPal, Venmo, and Stripe issue their own 1099-K forms to recipients who exceed $600 in payments. However, if you paid via direct bank transfer, check, or cash, YOU are responsible for issuing the 1099-NEC.

What's the difference between 1099-NEC and 1099-MISC?

Form 1099-NEC is specifically for reporting non-employee compensation (payments to contractors, freelancers). Form 1099-MISC is now used for other types of payments like rent to individuals, prizes, royalties, and other miscellaneous income. Before 2020, contractor payments were reported on 1099-MISC.

Do I need to file 1099-NEC for my LLC?

It depends on how the LLC is taxed. You DO need to file 1099-NEC for single-member LLCs and partnerships paid $600+. You do NOT need to file for LLCs taxed as S-Corps or C-Corps (unless they're law firms). When in doubt, request a W-9 from the LLC to confirm their tax classification.