Who get a 1099?

​Common Types of 1099 Recipients
​1. Independent Contractors & Freelancers (Form 1099-NEC)

• ​This is the most common form for business-to-business payments. You must issue or will receive a 1099-NEC if:
  
  • ​The payment was for services (not physical goods).  
    
  • ​The recipient is not an employee.  
    
  • ​The total paid for the year meets the IRS threshold.  
    

​2. Landlords, Prize Winners, & Attorneys (Form 1099-MISC)
​This form covers miscellaneous income that isn't direct compensation for services:  

• ​Rent: Paid to a landlord for office space or equipment.  
  
• ​Prizes/Awards: Such as sweepstakes winnings.  
  
• ​Legal Fees: Payments to attorneys must be reported on a 1099-MISC, even if the law firm is a corporation.  
  
• ​Royalties: If at least $10 was paid in royalties.
  

​3. Online Sellers & Gig Workers (Form 1099-K)
​If you receive payments through third-party apps like PayPal, Venmo, or Etsy, the platform issues this form.  
​Threshold: For 2026, the federal threshold for a 1099-K is typically $20,000 and 200 transactions, though some platforms or states may have lower limits. 

Who is Exempt?
​Not everyone who receives a business payment gets a 1099. Generally, you do not need to send one to:  

• ​C-Corporations and S-Corporations: Most corporate entities are exempt (except for legal and medical payments).  
  
• ​Sellers of Goods: If you only bought physical inventory or merchandise, no 1099 is required.  
  
• ​Personal Payments: You do not issue 1099s for personal tasks, like paying a housekeeper or a personal trainer, unless they are part of your trade or business.  
  

​Pro-Tip: Always have a vendor or contractor fill out a Form W-9 before you pay them. This tells you their tax classification and whether they are exempt from receiving a 1099 at the end of the year.