Short answer
For payments you make in 2026, you generally file a 1099-NEC for each non-employee you paid $2,000 or more for services, up from $600. The forms are due to the IRS and to each contractor by February 1, 2027, because January 31 falls on a Sunday. If you file 10 or more information returns, you must file electronically. The work that takes the longest is not the form, it is collecting W-9s, so start in December.
What changed for 2026
For years, the rule was simple: if you paid a subcontractor $600 or more during the year, you sent them a 1099. A 2025 federal tax law raised that reporting threshold to $2,000 for Forms 1099-NEC and 1099-MISC, starting with payments made in 2026. The first forms under the new rule are the ones you file in early 2027. Starting in 2027, the amount is adjusted for inflation each year.
Two things did not change:
- The $600 threshold still applies to payments made in 2025 and earlier. If you are late on last year's forms, use the old rule for those.
- Your subcontractors still owe tax on all of their income. The new threshold only changes what you have to report.
Who gets a 1099-NEC
In general, you file a 1099-NEC when your business paid a non-employee $2,000 or more during 2026 for services. For most Florida contractors, that means:
- Subcontractors and installers who work for themselves (sole proprietors)
- Single-member LLCs and partnerships, unless they are taxed as a corporation
- Independent designers, drafters, helpers and other service providers
Some common exceptions:
- Corporations usually don't get a 1099-NEC. Payments to attorneys are an important exception.
- Payments by credit card or payment apps such as PayPal or Venmo for business are reported by the payment company on Form 1099-K, not by you on a 1099-NEC.
- Employees get a W-2, not a 1099.
- Homeowners who pay a contractor for their own home remodel generally don't issue 1099s. The rule applies to payments made in the course of a trade or business.
The W-9 tells you how each vendor is set up. That is one more reason to collect it before the first payment.
The deadline: February 1, 2027
The 1099-NEC is due to the IRS and to each contractor by January 31. For 2026 payments, January 31, 2027 is a Sunday, so the deadline moves to Monday, February 1, 2027. Late or incorrect forms can lead to IRS penalties that increase the longer they stay unfiled, so plan to finish in mid-January, not on the last day.
E-filing is required for most businesses
If your business files 10 or more information returns in total during the year, counting 1099s, W-2s and other information forms together, you must file electronically. The IRS offers a free online portal, the Information Returns Intake System (IRIS), and most bookkeeping and payroll software can e-file too.
Florida has no state personal income tax, so most Florida businesses have no separate state 1099 filing. If you paid people who live or work in another state, check that state's rules.
W-9s: the part that actually takes time
The form itself takes minutes. Chasing a missing W-9 from a sub who is on a job in January takes weeks. A few habits make it easy:
- No W-9, no first payment. Make it part of onboarding every new sub.
- Check the name and tax ID. The name on the W-9 must match the IRS records for that tax ID. A business name on the invoice and a personal SSN on the W-9 is a common mismatch.
- Know about backup withholding. If a payee won't give you a tax ID, the IRS may require you to withhold 24% of their payments and send it to the IRS.
- Keep W-9s secure. They contain Social Security numbers. Store them in a protected folder and never collect them by text message.
A simple checklist to start in December
- Export a list of everyone you paid in 2026, with totals per payee
- Remove employees, corporations and anyone paid only by card or payment app
- Mark everyone paid $2,000 or more
- Check that each one has a complete, signed W-9 on file
- Request the missing W-9s now, before the holidays
- Review the totals and prepare the forms in early January
- E-file with the IRS and send each contractor their copy by February 1, 2027
Want it done for you?
L3 Digital Services collects W-9s from your subcontractors, checks names and tax IDs, prepares your 1099-NECs for your approval, e-files them with the IRS and sends each contractor a copy, in English and Portuguese. We also support accounting firms during the January rush.
Quick questions
What is the 1099-NEC threshold for 2026?
For payments made in 2026, you generally file a 1099-NEC for each non-employee you paid $2,000 or more for services in the course of your business. The old $600 threshold still applies to payments made in 2025 and earlier.
When are 2026 Forms 1099-NEC due?
By February 1, 2027, to both the IRS and the contractor. The usual January 31 deadline falls on a Sunday in 2027.
Do I have to e-file my 1099s?
If your business files 10 or more information returns in total during the year, yes. The IRS offers a free e-filing portal called IRIS.
Do I send a 1099 to an LLC?
Usually yes, if the LLC is a single-member LLC or partnership. If the LLC is taxed as a corporation, a 1099-NEC is generally not required, except for payments to attorneys. The vendor's W-9 shows how it is taxed.
Does Florida require a state 1099 filing?
Florida has no state personal income tax, so most Florida businesses have no separate state 1099 filing. Check the rules of any other state where your payees live or work.
This article is general information, not legal or tax advice. For advice about your situation, talk to a Florida attorney or your CPA. I AM NOT AN ATTORNEY LICENSED TO PRACTICE LAW IN THE STATE OF FLORIDA, AND I MAY NOT GIVE LEGAL ADVICE OR ACCEPT FEES FOR LEGAL ADVICE.