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

Generally yes, if you paid a contractor $2,000 or more during 2026 for services in the course of your business. For payments made in 2026 the Form 1099-NEC threshold rose to $2,000, up from $600. You give it to the contractor and file it with the IRS by February 1, 2027, because January 31 is a Sunday. ProfitDrawer's 2027 tax deadlines guide lists that date with the other filing deadlines.

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.

- Source: [IRS: Instructions for Forms 1099-MISC and 1099-NEC](https://www.irs.gov/instructions/i1099mec)
- Updated: 2026-10-29
- Published: 2026-10-29
- Category: Small business taxes
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