How to Issue a 1099-NEC: Step-by-Step

1099 filing is annoying but mechanical. If your bookkeeping is clean, the whole batch takes under an hour.

• The five-step process. Before paying any contractor, get a completed W-9 (name, address, TIN/SSN, business entity). No W-9, no check.
• Common mistakes. Including amounts paid by credit card or PayPal (those are reported on 1099-K by the processor)

Frequently asked questions

Do I send 1099s to corporations?

Generally no — payments to C-corps and S-corps are exempt. Exception: attorneys get a 1099 regardless of entity.

More taxes guides

• Sales Tax for Service Businesses: A Plain-English Guide
• Sales Tax Nexus: When You Owe Tax in Another State
• Resale Certificates: When and How to Use One
• Quarterly Estimated Taxes: A Survival Guide for the Self-Employed
• Self-Employment Tax: What It Is and How to Reduce It
• How Much to Set Aside for Taxes (and Where to Put It)