Do I need to issue a 1099 in 2026?
- Was it paid in the course of your trade or business? Personal payments create no 1099.
- Did it settle by card or payment app? Then the processor files Form 1099-K.
- Who did you pay? Corporations are generally exempt except for medical and legal services. Employees get a W-2.
- What did you buy? Goods are excluded; services are not.
- Did the yearly total reach the threshold? $2,000 for 2026 payments of services, rents and other income; $10 for royalties.
Common situations (2026 payments)
| Situation | Result |
|---|---|
| Handyman paid $3,400 by check for rental-business repairs | 1099-NEC |
| Handyman paid $1,700 by check | No 1099, under $2,000 |
| Plumber paid $4,000 by credit card | No 1099 from you; the processor reports |
| C corporation paid $12,000 for consulting | No 1099, corporate exemption |
| LLC (no corporate election) paid $2,600 for design work | 1099-NEC |
| $2,500 rent paid to an individual landlord | 1099-MISC, box 1 |
- IRS: Am I required to file a Form 1099 or other information return?
- IRS: Form 1099-NEC and independent contractors
Data checked 2026-10-30 against the linked irs.gov pages.