What is the 1099-NEC threshold?

The current IRS instructions set it at $2,000 paid to a payee in the year. It was $600 for payments made in 2025 and earlier. Check the IRS instructions for the year you are filing.

When is the 1099-NEC due?

January 31, both to the IRS and to the payee.

Do I send a 1099-NEC if I paid by PayPal or card?

Generally no. Card and payment-app payments are reported by the payment processor on Form 1099-K.

Does HelloBooks Free file 1099s?

This checker is free and separate from the app. For 1099 filing, see the 1099 filing guide.

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1099-NEC checker: who needs one?

Enter what you paid a contractor and how you paid them. The checker applies the IRS rules for services, corporations, card payments and the reporting threshold, and tells you whether a 1099-NEC is due by January 31.

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Yes, a 1099-NEC is needed

You paid $2,500.00 for services to a non-corporate payee by cash, check or bank transfer: file a 1099-NEC and send the payee a copy by January 31.

Collect a Form W-9 before you pay so you have the payee's TIN. See 1099 filing: forms, thresholds and due dates.

A checklist, not tax advice. Check edge cases (attorneys, rents, royalties) in the IRS instructions.

Track what you pay each contractor through the year: HelloBooks Free records bills and payments, $0.

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The four questions behind every 1099-NEC

A 1099-NEC reports nonemployee compensation: money you paid, in the course of your business, to a person who is not your employee, for services. Four things decide whether you file one: was it for services rather than goods, is the payee a corporation, did you pay by card or payment app (those are reported on Form 1099-K by the processor), and did the total for the year reach the reporting threshold.

The threshold rose to $2,000 in the current IRS instructions; for payments made in 2025 and earlier it was $600. The checker defaults to the figure on irs.gov and lets you edit it, so you can check an earlier year too.

Before you pay: collect a W-9

Ask each contractor for a Form W-9 before the first payment. It gives you the legal name, entity type and taxpayer ID you need for the 1099, and it tells you whether the payee is a corporation.

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FAQ

Frequently asked questions

What is the 1099-NEC threshold?: The current IRS instructions set it at $2,000 paid to a payee in the year. It was $600 for payments made in 2025 and earlier. Check the IRS instructions for the year you are filing.
When is the 1099-NEC due?: January 31, both to the IRS and to the payee.
Do I send a 1099-NEC if I paid by PayPal or card?: Generally no. Card and payment-app payments are reported by the payment processor on Form 1099-K.
Does HelloBooks Free file 1099s?: This checker is free and separate from the app. For 1099 filing, see the 1099 filing guide.