How to Send a 1099 Form to Someone Who Worked for You

What "providing a 1099" means and when you have to do it

Providing a 1099 means sending a completed IRS Form 1099-NEC or 1099-MISC to someone you paid for work during the year, and filing a copy with the IRS. You do this when you paid a non-employee — a contractor, freelancer, consultant, or vendor — more than $600 in a single calendar year for services or products.

The person who received the money needs the 1099 to report their income on their tax return. The IRS gets a copy so they can match what the worker reports against what you reported paying them. If you don't send it when required, you can face penalties.

You do not send a 1099 to employees on your payroll — those get W-2 forms instead. You also don't send one for payments to corporations (with rare exceptions), payments for rent or mortgage on real property, or payments under $600 in a calendar year.

Key Takeaways

• You must send Form 1099-NEC to any non-employee you paid $600 or more in a calendar year for services or products.
• The 1099 goes to the worker by January 31 and to the IRS by the same date (or February 28 if filing on paper).
• You need the worker's name, address, and tax ID (usually their Social Security number or EIN) before you can complete the form.
• The form reports the total amount paid in Box 1, and you keep a copy for your records for at least three years.
• If you don't have the worker's tax ID, you must request it in writing or face backup withholding penalties.

Collecting the information you need from the worker

Before you fill out a 1099, you need the worker's legal name, current mailing address, and tax identification number — usually their Social Security number (SSN) if they're a sole proprietor, or their Employer Identification Number (EIN) if they operate as a business entity.

The best time to collect this is when you first hire or contract with them. Have them complete a Form W-9 (Request for Taxpayer Identification Number and Certification), which is a straightforward one-page form they sign and return to you. The W-9 gives you their tax ID in a standardized way and protects you if the number turns out to be wrong — as long as you had no reason to know it was incorrect.

If someone refuses to give you their tax ID or gives you one that doesn't match IRS records, you're required to withhold 24 percent of their payments and send that to the IRS as backup withholding. This is a serious compliance issue, so get the W-9 signed before work begins.

Choosing between Form 1099-NEC and Form 1099-MISC

The form you use depends on what you paid for. Form 1099-NEC (Nonemployee Compensation) is for payments to independent contractors and self-employed people for services — writing, consulting, repairs, design work, and similar work. This is the most common 1099 form.

Form 1099-MISC (Miscellaneous Income) covers other types of payments: rent paid to an individual (not a business), royalties, prizes and awards, medical and health care payments, and certain other categories. If you're paying someone for their labor or professional services, use 1099-NEC. If you're paying for something else, check the IRS instructions to see which box on 1099-MISC applies.

You can obtain both forms free from the IRS website (irs.gov) or from tax software providers. Many accounting software packages and payroll services can generate and file 1099s for you automatically.

Filling out the form correctly

On Form 1099-NEC, you'll fill in your information (as the payer) in boxes at the top, the worker's name and tax ID in the boxes labeled "Recipient," and the total amount paid in Box 1. This is the total of all payments to that person during the calendar year, before any deductions or expenses.

Do not reduce the amount by what they spent or what you think they owe in taxes — report the gross amount you actually paid them. If you withheld taxes or made backup withholding, those amounts go in other boxes (the IRS instructions show which ones).

Make sure the name and tax ID match exactly what the worker gave you on their W-9. Mismatches between what you report and what the worker reports can trigger IRS notices to both of you. If you discover an error after you've already sent the form, you can file a corrected 1099 (marked "CORRECTED" at the top).

When and how to send the 1099

You must send the 1099 to the worker by January 31 of the year following the payment year. For example, payments made in 2024 get a 1099 sent by January 31, 2025. This gives them time to include it in their tax return.

Send it to the address they provided on their W-9. Use regular mail or any method that provides a record of delivery. Keep a copy for your own records for at least three years.

At the same time, you file copies with the IRS. If you're filing electronically (which the IRS prefers), the important date is January 31. If you're filing on paper, the important date is February 28. Most tax software and payroll services handle the IRS filing for you if you use them.

What to do if you can't locate the worker or they've moved

If you have a current address from your records, use that. If the worker has moved and you don't have a new address, make a reasonable effort to find one — check your email records, payment records, or ask other people who may know them.

If you genuinely cannot locate them after a reasonable search, you can file the 1099 with the IRS using the last address you have, and note in your records that the address may be incorrect. The IRS understands that some workers move without notice.

Do not skip sending the 1099 because you can't find them. The IRS filing is still required, and the worker may contact you asking for a copy if they need it for their tax return.

Penalties for not sending a 1099 when required

If you fail to send a required 1099 to the worker or to the IRS, you face penalties. The amount depends on how late you are and whether the failure was intentional. Penalties can range from $50 to $280 per form, depending on how long after the important date you file.

If you intentionally disregard the requirement to send a 1099, the penalty is higher — up to $560 per form. These penalties add up quickly if you have multiple workers.

The best defense is to keep good records of who you paid and how much, request a W-9 from every contractor before they start work, and file your 1099s on time. If you miss the important date, file as soon as you realize the mistake — the IRS is more lenient with late filings than with filings that never arrive.

Frequently Asked Questions

Do I have to send a 1099 if I paid someone with a credit card or payment app?

If you paid through a third-party payment processor like PayPal, Stripe, or Square, that processor may issue the 1099 instead of you. Check your processor's policy. If they don't issue one and you paid over $600, you still have to send it yourself. The payment method doesn't change the requirement.

What if the worker says they don't want a 1099?

You must send it anyway if the payment exceeds $600. The 1099 is a legal requirement, not optional. The worker needs it for their tax return, and the IRS expects to see it. Agreeing not to send one doesn't protect either of you.

Can I send a 1099 electronically instead of by mail?

Yes, you can email it or send it through your accounting software, as long as you can show you delivered it. The IRS doesn't require a specific delivery method for the copy to the worker — mail, email, or find file transfer all work. Keep a record showing when you sent it.

What happens if I send a 1099 to someone but they don't report it on their tax return?

The IRS will notice the mismatch when they compare your filing against theirs. They may send the worker a notice asking why the income is missing. This is between the worker and the IRS — you've met your obligation by sending the form correctly and on time.

Do I need to send a 1099 to a business or corporation I paid?

Generally no. Payments to corporations are not reported on 1099-NEC. Payments to LLCs and partnerships may or may not require a 1099 depending on their structure — check with a tax professional. If you're unsure what the worker is registered as, ask them on the W-9.