[{"data":1,"prerenderedAt":179},["ShallowReactive",2],{"guide-contractor-1099-nec-w9-2026-en-US":3},{"guide":4,"related":159},{"title":5,"seoTitle":6,"description":7,"summary":8,"sections":9,"faq":97,"cta":116,"date":118,"updated":118,"service":119,"order":120,"disclaimer":121,"sources":122,"slug":157,"locale":158},"Paid a Contractor in 2026? Form 1099-NEC and W-9 Rules for Landlords and Small Businesses","Form 1099-NEC and W-9 Rules for 2026","The 1099-NEC threshold rose to $2,000 for 2026 payments. Who must file, when landlords file, which payments are left out, W-9s, backup withholding and the February 1, 2027 deadline.","For payments made in 2026, you generally file Form 1099-NEC for a contractor you paid $2,000 or more for services in the course of your trade or business, unless the contractor is a corporation. Work on the home you live in is personal and not reportable. Landlords file only if their rental activity is a trade or business. Collect a Form W-9 before the first payment; forms for 2026 payments are due Monday, February 1, 2027. We are contractors, not tax advisors.",[10,39,48,54,62,67,73,81,87],{"heading":11,"paragraphs":12,"list":14,"table":19,"after":37},"Do you need to file a 1099-NEC for a contractor you paid in 2026?",[13],"Generally yes, when all four of these are true:",[15,16,17,18],"You paid in the course of your trade or business. Personal payments are not reportable.","The payment was for services. That includes parts or materials when supplying them was incidental to the service.","The contractor is not a corporation. An LLC taxed as a C or S corporation counts as a corporation. A single-member LLC without a corporate election, or a partnership, does not.","Your payments to that contractor for the year total $2,000 or more. The total is per contractor for the calendar year, across all jobs.",{"caption":20,"head":21,"rows":24},"Common cases",[22,23],"Usually reported on Form 1099-NEC","Usually not",[25,28,31,34],[26,27],"A sole-proprietor electrician you paid $2,500 by check to rewire your store","The same electrician rewiring the home you live in",[29,30],"An unincorporated cleaning service paid $3,000 by Zelle over the year to clean your office","A cleaning service you paid by credit card (it falls under the card processor's Form 1099-K rules)",[32,33],"A handyman whose LLC has no corporate election, paid $2,100 across several jobs for your business","A contractor whose company is an S corporation",[35,36],"Legal fees paid to an attorney for your business, even when the law firm is a corporation","Building materials you bought from a supply house",[38],"We are a construction contractor. We do not prepare tax returns or give tax, legal or accounting advice. The tax information in this guide is general reference material; ask a CPA how it applies to your situation.",{"heading":40,"paragraphs":41,"list":43},"What changed for 2026?",[42],"The 2025 tax law (P.L. 119-21) raised the minimum for reporting nonemployee compensation, and several other payment types, from $600 to $2,000 for payments made in 2026 and later, according to the [IRS instructions for Forms 1099-MISC and 1099-NEC](https:\u002F\u002Fwww.irs.gov\u002Finstructions\u002Fi1099mec). The amount is indexed for inflation for years after 2026.",[44,45,46,47],"Payments made in 2025 still used the $600 threshold, so the forms filed in early 2026 were not affected.","Rent you pay in your business, reported on Form 1099-MISC, also uses $2,000.","The threshold for backup withholding rose to $2,000 as well, though withholding can apply below that if you had to file a 1099 for the same contractor for the previous year.","The other tests for who must file did not change: the trade-or-business test, the corporation exception and the card-payment exception are the same as before.",{"heading":49,"paragraphs":50},"Do landlords have to file 1099s for contractors?",[51,52,53],"Only if the rental activity is a trade or business. There is no special rule that makes every landlord file: a 2010 law that would have treated most people receiving rental income from real estate as being in business for this purpose was repealed in 2011 ([Public Law 112-9](https:\u002F\u002Fwww.congress.gov\u002F112\u002Fplaws\u002Fpubl9\u002FPLAW-112publ9.htm)), back to its start date.","Whether your rentals are a trade or business depends on the facts, such as how many units you own, how regularly and actively you manage them, and whether managing property is your work. The owner of one rented condo and an LLC running several buildings with staff can come out differently.","Schedule E asks every rental owner whether they made payments that would require Forms 1099. Settle that question with your CPA before the filing deadline, while there is still time to file, not in April.",{"heading":55,"list":56},"Which payments are left out?",[57,58,59,60,61],"Payments to corporations, including an LLC taxed as a C or S corporation. Legal fees are still reported on Form 1099-NEC when the law firm is a corporation, and payments for medical or health care services go on Form 1099-MISC even when the provider is a corporation.","Card and app purchases. Payments by credit or debit card, or sent as a purchase through a payment app or online marketplace that settles them, fall under the Form 1099-K rules, so you do not put them on a 1099-NEC. The processor issues a 1099-K only above its own thresholds. An app transfer sent as a personal payment does not fall under those rules and stays yours to report.","Not Zelle. [Zelle says it does not issue Forms 1099-K](https:\u002F\u002Fzellepay.com\u002Fsupport\u002Fusing-zelle), so a contractor you paid through Zelle, by check, by bank transfer or in cash is yours to report if the other tests are met.","Merchandise. Payments for merchandise, freight, storage and similar items, such as materials you buy from a supplier, are not reportable.","Materials on a contractor's invoice. The IRS includes parts and materials in the reportable amount when supplying them was incidental to the service. When an invoice lists significant materials separately, ask your CPA how to treat it.",{"heading":63,"paragraphs":64},"Paying a general contractor or hiring each trade yourself",[65,66],"If you hire a general contractor, you look only at your payments to the general contractor. The general contractor handles reporting for the subcontractors it pays.","If you hire and pay the electrician, the plumber and the painter yourself, each one is tested separately against the $2,000 total, and each needs a W-9. Hiring trades directly also moves coordination, permits and insurance to you; our guide to [comparing contractor estimates](\u002Fguides\u002Fcompare-contractor-estimates) covers what to check.",{"heading":68,"paragraphs":69},"Collect a Form W-9 before the first payment",[70,71,72],"Form W-9 gives you the contractor's legal name, tax classification and taxpayer identification number (TIN). The classification tells you whether the corporation exception applies, and the TIN goes on the 1099.","Ask for it before you pay. If a contractor who should receive a 1099 does not give you a TIN, you may have to withhold 24% from your payments to them as backup withholding and send it to the IRS.","Keep the W-9s on file and confidential; you do not send them to the IRS. We provide a completed Form W-9 on request.",{"heading":74,"paragraphs":75,"list":77},"When are 1099-NEC forms due for 2026 payments?",[76],"Monday, February 1, 2027. The deadline is January 31, which falls on a Sunday in 2027, so it moves to the next business day. The same date applies to filing with the IRS and to giving the contractor their copy.",[78,79,80],"If you file 10 or more information returns in total for the year, counting all types together, you must file them electronically. The IRS's free [IRIS portal](https:\u002F\u002Fwww.irs.gov\u002Ffiling\u002Fe-file-information-returns-with-iris) accepts Form 1099-NEC.","Late or missing forms carry a penalty per form that grows with lateness. For forms due in 2026 it ran from $60 to $340, and at least $680 for intentional disregard; the IRS adjusts the amounts for inflation each year.","Some states require their own copy of Form 1099-NEC. Ask your CPA about the rules where you file.",{"heading":82,"paragraphs":83},"New York sales tax on the same invoice",[84,85,86],"This is not a 1099 rule, but it turns on the same invoices. New York sales tax uses its own test for a capital improvement under [Tax Bulletin TB-ST-104](https:\u002F\u002Fwww.tax.ny.gov\u002Fpubs_and_bulls\u002Ftg_bulletins\u002Fst\u002Fcapital_improvements.htm): the work must substantially add to the value of the property or appreciably prolong its life, become part of it or be permanently affixed, and be intended as permanent.","For capital improvement work, the owner gives the contractor Form ST-124 and pays no sales tax. Building a deck, installing a water heater or installing kitchen cabinets qualify; repairing a broken step, replacing a water heater thermostat or painting existing cabinets are taxable repairs. A contractor does not have to accept Form ST-124; if you were charged tax on a capital improvement, you can ask the Tax Department for a refund. Tenant work that the lease requires removing at the end of the term generally does not qualify, and sales tax records must be kept for at least three years.","This test is separate from the federal income tax rules for repairs and improvements, and the same job can come out differently under each. For what improvements mean when you sell your home, see [which home improvements reduce your taxes when you sell](\u002Fguides\u002Fhome-improvements-taxes-when-you-sell).",{"heading":88,"list":89},"Year-end checklist",[90,91,92,93,94,95,96],"List every contractor you paid in 2026 for your business or rental, with the total and how you paid.","Remove card payments and app payments sent as purchases; they fall under the Form 1099-K rules. Keep app transfers sent as personal payments.","Remove corporations, except law firms, whose fees still go on Form 1099-NEC.","Make sure you have a W-9 for everyone left, and request missing ones now.","Flag each contractor at $2,000 or more for a Form 1099-NEC.","Keep contracts and itemized invoices; they support the 1099s, the repair or improvement treatment and any sales tax exemption.","If you own rentals, settle with your CPA whether your rental activity requires filing.",[98,101,104,107,110,113],{"q":99,"a":100},"Do I need to send a 1099 to a contractor who worked on my own home?","No, if the work was only on the home you live in: those are personal payments and are not reportable on Form 1099-NEC, however much you paid. If you rent out part of the building or use part of it for your business, payments for that part may be reportable; ask your CPA.",{"q":102,"a":103},"Is the $2,000 threshold per job or per year?","Per contractor, per calendar year. Add up everything you paid that contractor in 2026 in the course of your business; if the total is $2,000 or more and the other tests are met, file a Form 1099-NEC.",{"q":105,"a":106},"Do I issue a 1099-NEC to a contractor I paid by Zelle or through a payment app?","Card payments, and payments sent as purchases through payment apps that settle the transaction for the contractor, fall under the Form 1099-K rules, not the 1099-NEC. An app transfer sent as a personal payment does not. Zelle says it does not issue Forms 1099-K, so a Zelle payment is treated like a check: if the other tests are met, you report it.",{"q":108,"a":109},"Do I need to issue a 1099 to an LLC?","It depends on how the LLC is taxed, which its W-9 shows. An LLC taxed as a C or S corporation is generally excluded. A single-member LLC without a corporate election, or an LLC taxed as a partnership, is reportable if the other tests are met.",{"q":111,"a":112},"What if a contractor won't give me a W-9?","Ask in writing and keep a record of the request. If you still have no TIN for a contractor who should get a 1099, you may need to withhold 24% from your payments as backup withholding. It is easier to make a W-9 a condition of the first payment.",{"q":114,"a":115},"When is the 2026 Form 1099-NEC due?","Monday, February 1, 2027, both for filing with the IRS and for giving the contractor their copy, because January 31, 2027 is a Sunday.",{"text":117},"Send the scope of work for your rental or business property. You receive, at no charge, a written estimate itemized by room and building system, and a completed Form W-9 on request.","2026-10-26","rental",143,"reference",[123,127,130,133,136,139,142,145,149,153],{"title":124,"url":125,"publisher":126},"Instructions for Forms 1099-MISC and 1099-NEC","https:\u002F\u002Fwww.irs.gov\u002Finstructions\u002Fi1099mec","Internal Revenue Service",{"title":128,"url":129,"publisher":126},"General Instructions for Certain Information Returns","https:\u002F\u002Fwww.irs.gov\u002Finstructions\u002Fi1099gi",{"title":131,"url":132,"publisher":126},"About Form W-9","https:\u002F\u002Fwww.irs.gov\u002Fforms-pubs\u002Fabout-form-w-9",{"title":134,"url":135,"publisher":126},"Backup withholding","https:\u002F\u002Fwww.irs.gov\u002Fbusinesses\u002Fsmall-businesses-self-employed\u002Fbackup-withholding",{"title":137,"url":138,"publisher":126},"Information return penalties","https:\u002F\u002Fwww.irs.gov\u002Fpayments\u002Finformation-return-penalties",{"title":140,"url":141,"publisher":126},"E-file information returns with IRIS","https:\u002F\u002Fwww.irs.gov\u002Ffiling\u002Fe-file-information-returns-with-iris",{"title":143,"url":144,"publisher":126},"Form 1099-K FAQs: General information","https:\u002F\u002Fwww.irs.gov\u002Fnewsroom\u002Fform-1099-k-faqs-general-information",{"title":146,"url":147,"publisher":148},"Public Law 112-9 (2011)","https:\u002F\u002Fwww.congress.gov\u002F112\u002Fplaws\u002Fpubl9\u002FPLAW-112publ9.htm","U.S. Congress",{"title":150,"url":151,"publisher":152},"Capital Improvements (TB-ST-104)","https:\u002F\u002Fwww.tax.ny.gov\u002Fpubs_and_bulls\u002Ftg_bulletins\u002Fst\u002Fcapital_improvements.htm","New York State Department of Taxation and Finance",{"title":154,"url":155,"publisher":156},"Using Zelle","https:\u002F\u002Fzellepay.com\u002Fsupport\u002Fusing-zelle","Zelle","contractor-1099-nec-w9-2026","en-US",[160,166,170,174],{"slug":161,"title":162,"description":163,"service":119,"date":164,"updated":165},"rental-turnover-cost-tips","Reducing turnover and maintenance costs on rental units","Practical ways for NYC and Long Island landlords to shorten vacancy and spend less on each turnover: standard finishes, durable materials and planned maintenance.","2026-10-24","2026-10-25",{"slug":167,"title":168,"description":169,"service":119,"date":165,"updated":165},"nyc-lead-paint-apartment-turnover","Lead Paint Work Required at Apartment Turnover in NYC","What NYC owners of pre-1960 rentals must do at each turnover under Local Law 1: friction surfaces, XRF testing, dust clearance limits and records.",{"slug":171,"title":172,"description":173,"service":119,"date":165,"updated":118},"rental-repair-vs-improvement-tax","Repairs vs Improvements on a Rental Turnover","How IRS repair and improvement rules apply to NYC and Long Island rental turnovers, the safe harbors to raise with your CPA, and how to itemize invoices.",{"slug":175,"title":176,"description":177,"service":178,"date":164,"updated":165},"flood-fire-damage-first-steps","First steps after a flood or fire for NYC and Long Island property owners","What to do in the first days after water or fire damage: safety, power, documentation for insurance, drying and choosing what to rebuild.","restoration",1793000256128]