How do I file a 1099 for an independent contractor?

To file a 1099 for an independent contractor in the U.S., you usually mean filing Form 1099-NEC for payments you made to a non-employee contractor.

1) Confirm you need to file

You generally must file Form 1099-NEC if all of these are true:

• You paid an independent contractor or other non-employee
• You paid them $600 or more during the year for services
• You paid as part of your business or trade
• The contractor is not your employee

2) Get the contractor’s tax info first

Before paying them, you should collect:

• Form W-9 from the contractor
• Their:
  • legal name
  • business name, if any
  • address
  • Taxpayer Identification Number (TIN), usually their SSN or EIN

3) Fill out Form 1099-NEC

You’ll need:

• Your business name, address, and EIN
• The contractor’s name, address, and TIN
• The amount you paid them in Box 1: Nonemployee compensation

Usually, this is the total amount paid for services during the calendar year.

4) File it with the IRS

You can file:

• Electronically through the IRS Filing Information Returns Electronically (FIRE) system or approved e-file providers
• By mail using the paper forms, if you’re allowed to file on paper

Deadlines

• To the contractor: usually January 31
• To the IRS: usually January 31 as well for Form 1099-NEC

5) Send the contractor a copy

Give the contractor Copy B of the 1099-NEC by the deadline.

6) Keep records

Save:

• the W-9
• payment records
• a copy of the filed 1099
• proof of submission

Important notes

• You usually do not issue a 1099 to a contractor paid by credit card, PayPal, Venmo business payments, or other third-party payment networks for those payments; those are typically reported by the payment processor on Form 1099-K if thresholds are met.
• Payments to corporations are often exempt, but there are exceptions, so it’s best to verify before skipping a 1099.
• If you didn’t withhold taxes from the contractor, that’s normal—contractors generally handle their own taxes.

If you want, I can also give you:

1. a step-by-step filing checklist,
2. a sample filled-out 1099-NEC, or
3. help figuring out whether a specific worker needs a 1099.