How to File a 1099-NEC (2026)

If you paid a freelancer or contractor $2,000 or more for services during 2026, you need to issue a 1099-NEC by January 31. The process below covers what to collect, what to put in Box 1, and how to distribute the copies.

1. Collect the W-9 first: request a signed W-9 from the contractor before you pay them, so you have their legal name and TIN ready at year end.
2. Total the payments: add up every payment for services during the year. Include payments of $2,000 or more made in 2026; amounts below the threshold do not need a form.
3. Fill Box 1: enter the total nonemployee compensation. Leave Box 4 at zero unless you withheld federal income tax.
4. Prepare the copies: Copy A goes to the IRS, Copy B goes to the recipient, and you keep a copy for your records.
5. Meet the deadline: furnish Copy B to the recipient and file Copy A with the IRS by January 31. There is no extension for the 1099-NEC.

1099-NEC versus 1099-MISC

The 1099-NEC is strictly for nonemployee compensation — payments for services by contractors and freelancers. Everything else that used to be reported on the old combined form, such as rents, royalties, prizes, and awards, goes on the 1099-MISC. If you are not sure which form applies, ask: services performed for your business means the NEC; rent or royalties means the MISC.

TaxForge editorial team — this free template is for general reference only. It is not tax advice and is not affiliated with the IRS. Have a licensed tax professional review your situation before filing.