What is Form 1099-NEC?
Form 1099-NEC, Nonemployee Compensation, reports what a business paid someone who isn’t its employee for services in the course of its trade or business: fees, commissions, prizes and awards for services, and other pay to independent contractors. The payer gives Copy B to the recipient and files Copy A with the IRS.
Who must issue a 1099-NEC
The IRS’s 2026 instructions say to file Form 1099-NEC for each person to whom you paid at least $2,000 during the year in the course of your business. The threshold rose to $2,000 for tax years beginning after 2025 and may be adjusted for inflation from 2027. For 2025 payments it was $600.
Payments to your employees don’t go on a 1099-NEC: their wages go on Form W-2. If you aren’t sure which a worker is, the IRS looks at behavioral control, financial control and the relationship of the parties.
1099-NEC deadlines for 2026 payments
Both the recipient’s copy and the IRS filing are due by January 31. January 31, 2027 is a Sunday, and the IRS moves a due date on a weekend or legal holiday to the next business day, so for 2026 payments the date is February 1, 2027.
If you must file 10 or more information returns in total during the year, the IRS requires you to file them electronically.
How to make 1099-NEC recipient copies with PayDocs
- Choose the tax year: 2025 or 2026.
- Enter your name, address and EIN as the payer, then the recipient’s name, address and the last four digits of their TIN.
- Enter the nonemployee compensation for the year from your payment records, any federal backup withholding, and the state boxes if they apply.
- Check the totals against your invoices and payments, then read the preview box by box.
- Download Copy B and Copy 2 and give them to the contractor.
PayDocs makes the recipient copies only. File Copy A with the IRS yourself or through your filing service. The IRS lets payers truncate the recipient’s TIN on the recipient’s statement; the payer’s own EIN is shown in full.
Form 1099-NEC: common questions
Is the 1099-NEC generator free?
Creating and previewing a 1099-NEC is free, with no account or card. The finished PDF, without the watermark, will cost $4.99 when checkout opens, the same as a pay stub.
What is the 1099-NEC threshold for 2026?
$2,000. The IRS’s 2026 instructions say to file Form 1099-NEC for each person you paid at least $2,000 in the course of your business during the year. It was $600 for 2025 payments.
When is the 1099-NEC due for 2026?
By January 31, both to the recipient and to the IRS. Because January 31, 2027 is a Sunday, the due date moves to the next business day, February 1, 2027.
Should I use 1099-NEC or 1099-MISC?
Use 1099-NEC for pay for services by someone who isn’t your employee. Use 1099-MISC for other payments such as rents, royalties, prizes and awards not for services, and other income.
Does PayDocs file the 1099 with the IRS?
No. PayDocs produces the recipient copies (Copy B and Copy 2). Copy A is filed with the IRS by you or your filing service.
Is a PayDocs 1099 proof of income?
No. PayDocs lays out figures you provide from your own payroll or payment records. It doesn’t verify them, file them or certify anyone’s income. Only make a form for payments that really happened.
Sources
- IRS — Instructions for Forms 1099-MISC and 1099-NEC (2026)
- IRS — General Instructions for Certain Information Returns
- IRS — Independent contractor (self-employed) or employee?
Official sources checked October 4, 2026. Approved by PayDocs. This explains how the form works; it is not tax or legal advice.