Do I need to send a 1099-NEC to contractors I paid in 2026?

IRS instructions say a payment is generally reported on Form 1099-NEC when all of these are true:

• The person is not your employee.
• The payment is for services in the course of your trade or business.
• The payee is an individual, partnership or estate, or in some cases a corporation.
• You paid that payee $2,000 or more in total for the year.

Common exceptions:

• Corporations: payments to a corporation, including an LLC taxed as a C or S corporation, are generally not reported. Payments for legal services are an exception and are still reported.
• Card and payment app payments: payments you made by credit card or payment card are reported on Form 1099-K by the payment company, not on Form 1099-NEC.
• Personal payments are not reportable.

Ask each contractor for a Form W-9 when you start working together, so you have their taxpayer identification number in January. A payee who does not give you a number can be subject to backup withholding. The $2,000 threshold may be adjusted for inflation starting in 2027. General information, not tax advice.