Your Guide to 1099s for the 2025 Tax Year

Article | January 13, 2026 | Atchley & Associates LLP

A new year means it’s time to get your 1099s in order. If you paid contractors in 2025, paid rent for office space, or issued royalty payments, there’s a good chance you’ll need to file one or more forms. Rules are not complicated - but waiting until the last minute may often lead to errors, missed deadlined, or unnecessary penalties.

Here’s a clear overview of who should receive a 1099, which form to use, and the deadlines to keep in mind.

Key Forms & Who Gets Them

Form 1099-NEC – Nonemployee Compensation

Issue this form if you paid $600+ to a freelancer, contractor, or consultant who is not your employee.

Applies to individuals, sole proprietors, and partnerships
Usually not issued to corporations, except for certain cases like attorney fees
LLCs depend on their tax classification (check the W-9)

Deadline: Send to recipients and file with the IRS by February 2, 2026.

Form 1099-MISC – Miscellaneous Income

Use this form for:

Rent payments ($600+)
Royalties ($10+)
Prizes or awards
Certain medical or healthcare payments, even to corporations

Deadlines:

To recipients: February 2, 2026
To IRS: March 2 (paper) or March 31 (electronic)

Form 1099-K – Third-Party Payments

If you paid vendors through platforms like PayPal, Venmo Business, Square, or credit cards, you do not issue a 1099-NEC or 1099-MISC.

The payment processor handles the 1099-K
Keep clear records to avoid duplicate reporting

How to Stay Organized

Collect updated W-9s from all 2025 vendors and contractors
Verify vendor details (legal names, addresses, taxpayer IDs)
Create a checklist of vendors requiring 1099s

Avoid Penalties

Late or incorrect 1099s can cost $60–$330 per form. Review your records early and confirm your filing requirements before the February 2 deadline.

Keep in mind that our team is ready to assist you in any step of the process. Contact us today.

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Call us at (512) 346-2086 or fill out the form below and we'll contact you to discuss your specific situation.

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For more information on how Atchley & Associates, LLP can assist you, please call (512) 346-2086.

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