Free year-end tool · 2026 tax year

Your 1099s are due February 1. Your W-9s are due before the last check.

For payments made in 2026, the 1099-NEC threshold rose from $600 to $2,000. The penalty for a missing or late form did not go away. Enter your subs to see who needs a 1099, who is missing a W-9, and what you are exposed to if you wait until January.

Run the 1099 check W-9 vs 1099, explained

65 days to collect W-9s while you still owe moneyPayments made by Dec 31, 2026 count toward 2026

97 days until 1099-NECs are dueTo the IRS and to each sub by Feb 1, 2027

$2K new reporting thresholdPer sub, for 2026 payments. It was $600 for 2025.

1099 Readiness Check

Who gets a 1099 this year?

Sample subs are loaded so you can see how it works. Replace them with your own. The names and amounts you enter stay in your browser.

A1099-NECs to file

$0 reportable

BMissing W-9s

on subs who need a 1099

CBackup withholding

24% of what you still owe them

DForms at risk

IRS and sub copies with no W-9 behind them

Payments made by credit card or a payment app are reported by the processor on a 1099-K. Leave them out. Forms at risk counts two forms, the IRS copy and the sub's copy, for each sub who needs a 1099 and has no W-9 on file. A missing W-9 does not excuse a late or missing form, and a form filed without the sub's tax ID can also be penalized unless you can show you asked for it.

Collect these W-9s first

Every sub who needs a 1099 has a W-9 on file. Verify names and tax IDs match before you file.

Get your 1099 worksheet

Download this list as a spreadsheet, plus a W-9 request for every sub who is missing one. We'll also send you a reminder before the February 1 deadline.

When you download, we receive only your email address, how many 1099s and missing W-9s you counted, and the campaign link you came from. Sub names and amounts are never sent.

No spam, never sold. Unsubscribe anytime. See our privacy policy.

The paperwork

One form you collect. One form you file. One you can ignore.

The W-9 is what tells you whether you owe a 1099 at all. Without it you do not know the sub's legal name, tax ID, or whether they are a corporation.

W-9You collect

What it is: The sub's legal name, tax ID (SSN or EIN), and federal tax classification.
When: Before the first payment. After the last payment you have no leverage.
Where it goes: Your files. You do not send it to the IRS.

1099-NECYou file

What it is: Reports what you paid a non-corporate sub for services during the year.
When: For 2026 payments: Feb 1, 2027, to the IRS and to the sub.
Who: Each sub paid $2,000 or more for services in 2026. Attorneys count even if incorporated.

1099-KNot yours

What it is: Reports payments that ran through a card network or payment app.
Who files: The payment processor, not you.
Why it matters: Leave card and app payments out of your 1099-NEC totals, or the sub gets taxed twice on paper.

The calendar

The window to fix this closes in stages.

Now

Oct to Dec

Request W-9s while subs are still waiting on money. This is the only stretch where they reply fast.

Dec 31, 2026

Books close

The last day a payment counts toward 2026 totals.

Feb 1, 2027

1099-NEC due

File with the IRS and furnish each sub's copy. Jan 31 is a Sunday, so the deadline rolls forward.

Aug 1, 2027

Penalty maxes

Forms still unfiled after Aug 1 hit the top per-form tier.

What a late 1099-NEC costs, per form

Charged separately for the IRS copy and the sub's copy, and higher the later the form is filed.

Not collecting W-9s does not excuse a late form. Documented, repeated W-9 requests are what support a reasonable-cause defense.

How True Home handles it

Put the W-9 in front of the payment.

True Home blocks payment to any sub without a current W-9, COI, and lien waiver. You stop chasing paperwork in January because nobody got paid without it.

Start your free trial Request a demo

$299/month billed annually · 14-day free trial · Free for subs

W-9 required before the first dollarSubs upload it once. The compliance gate checks it before every payment.

Every payment tied to a vendorEach payment is recorded against the vendor that received it.

Synced to QuickBooksPayments land in your books with the vendor already set up for 1099 reporting.

Works alongside your PM softwareRoute just the money and the compliance through True Home.

Questions builders ask

W-9 and 1099 FAQ

What is the 1099-NEC threshold for 2026?

$2,000 per payee for payments made during 2026, reported on forms filed in early 2027. Payments made in 2025 used the old $600 threshold. Starting in 2027 the $2,000 figure is adjusted for inflation.

Do I send a 1099 to an LLC?

It depends on how the LLC is taxed, which is why you need the W-9. A single-member LLC or an LLC taxed as a partnership gets a 1099-NEC. An LLC that elected to be taxed as an S or C corporation generally does not, unless it is a law firm.

Do corporations get 1099s?

Generally no. The main exception in construction is legal fees: attorneys and law firms get a 1099-NEC even when incorporated.

What if a sub won't give me a W-9?

You are required to start backup withholding at 24% on reportable payments to that sub and send the withheld amount to the IRS. Keep a record of every request you made. The easier fix is to require the W-9 before you release payment.

Do I include materials in the 1099 amount?

Generally yes when the materials were part of the service the sub provided. Payments only for materials, such as a supplier invoice, are not reported on a 1099-NEC.

I paid a sub by credit card. Do I need to file?

No. Payments by card or through a payment app are reported by the processor on Form 1099-K. Leave them out of your 1099-NEC totals.

Do I have to e-file?

If you file 10 or more information returns in a year, counting W-2s and all 1099s together, you must file electronically. The IRS's free IRIS portal accepts 1099s.

Not tax advice. This tool gives general information about federal reporting rules for payments made in 2026. It does not cover state 1099 filing, foreign payees, or every exception. Confirm your filing obligations with your CPA.

Sources: IRS Instructions for Forms 1099-MISC and 1099-NEC; IRS Information Return Penalties; One Big Beautiful Bill Act, sec. 70433.

Last updated October 26, 2026.