When 1099 Forms Are Due in 2024

1099 forms are due to the IRS by January 31, 2024, and to the people or businesses you paid by the same date

If you paid someone $600 or more during 2023 for services, rent, or other reportable income, you must send them a 1099 form and file a copy with the IRS. The important date for both is January 31, 2024. This applies whether you paid in cash, check, credit card, or digital payment.

The form you use depends on what you paid for. A 1099-NEC covers non-employee compensation — freelancers, contractors, consultants. A 1099-MISC covers rent, royalties, and other miscellaneous income. A 1099-K is filed by payment processors like PayPal or Square when they process $5,000 or more in transactions for you in a calendar year (though the IRS delayed the $5,000 threshold enforcement for 2023 and 2024).

If January 31 falls on a weekend or holiday, the important date moves to the next business day. In 2024, January 31 is a Wednesday, so there is no extension for that reason.

Key Takeaways

• You must send a 1099 to anyone you paid $600 or more for services or other reportable income during 2023, and file a copy with the IRS by January 31, 2024.
• The form type depends on what you paid for: 1099-NEC for contractor services, 1099-MISC for rent or royalties, 1099-K for payment processor transactions.
• You send the form to the recipient and file Copy B with the IRS; the recipient needs it to report income on their own tax return.
• If you miss the important date, penalties begin at $50 per form, though the IRS may waive them if you file within 30 days of the important date.

Who must file a 1099 and what triggers the requirement

You file a 1099 if you are self-employed, own a business, or paid someone outside your business for services. You do not file a 1099 for payments to employees — those go on a W-2 instead. You also do not file for payments to corporations, though there are exceptions for certain types of corporations.

The $600 threshold applies to most 1099-NEC and 1099-MISC filings. Some states have lower thresholds: Massachusetts requires a 1099-MISC for rent of $600 or more, but Illinois requires it for $1,000 or more. Check your state's rules if you operate in multiple states.

Payment method does not matter. Whether you paid by check, cash, bank transfer, credit card, or PayPal, if the total to one person hits $600 in a calendar year, you file a 1099. If you paid $599, you do not have to file, but you can choose to anyway.

How to get the recipient's information and file correctly

You need the recipient's name, address, and Taxpayer Identification Number (TIN) — usually their Social Security Number or Employer Identification Number. Ask for this information when you hire someone or before you pay them. If you do not have it, ask again before filing; filing with a wrong TIN can trigger IRS notices to both you and the recipient.

You can file on paper or electronically. The IRS prefers electronic filing through FIRE (Filing Information Returns Electronically) or through a tax software provider that supports bulk 1099 filing. Paper forms go to the IRS address listed on the form itself — it varies by state. You file Copy B with the IRS and send Copy B to the recipient; keep Copy C for your records.

If you file electronically, the important date is the same: January 31, 2024. If you file on paper and mail it, it must be postmarked by January 31. Many tax software providers and accounting firms offer 1099 filing services and will handle the IRS submission for you.

What happens if you miss the January 31 important date

The IRS charges a penalty for late 1099 filing. The amount depends on how late you file: $50 per form if you file within 30 days of the important date, $100 per form if you file 31 to 60 days late, and $250 per form if you file more than 60 days late. The maximum penalty per year is $3,348,750 for large filers, though the IRS may reduce it.

If you file the 1099 but do not send a copy to the recipient, that is a separate violation. The recipient still needs the form to report their income on their tax return, and if they do not have it, they may face their own penalties or audit risk.

The IRS may waive penalties if you show reasonable cause — for example, if your accountant failed to file or your business had a system failure. You must request the waiver in writing and explain why you missed the important date. Filing late but within 30 days gives you the best chance of a waiver.

Different 1099 forms and when to use each one

A 1099-NEC is for non-employee compensation: payments to independent contractors, freelancers, consultants, and other service providers who are not your employees. This is the most common form for small business owners.

A 1099-MISC covers miscellaneous income including rent paid to individuals (not corporations), royalties, prizes, awards, and other payments that do not fit another category. If you paid rent to a person for property they own, you file a 1099-MISC.

A 1099-K is filed by payment processors — PayPal, Square, Stripe, and similar services — when they process $5,000 or more in card transactions or third-party network transactions for you in a year. You do not file this yourself; the payment processor files it with the IRS and sends you a copy. The IRS delayed enforcement of the $5,000 threshold for 2023 and 2024, so some processors may use a higher threshold temporarily.

A 1099-INT is for interest income, and a 1099-DIV is for dividends. Banks and investment firms file these automatically, so you typically do not file them yourself.

State-specific 1099 requirements and variations

Most states follow federal 1099 rules, but some have their own thresholds or forms. Massachusetts requires a 1099-MISC for rent paid to individuals at $600 or more. Illinois requires it at $1,000 or more. New Jersey requires a 1099-NEC for contractor payments at $1,000 or more.

Some states require you to file a copy of the 1099 with the state tax authority as well as the IRS. New York, for example, requires certain 1099-NEC filers to submit copies to the state. Check your state's Department of Revenue or tax authority website to see if you have additional filing obligations.

If you operate in multiple states and paid someone who lives in a state with a lower threshold than the federal $600, you may need to file a 1099 even if the federal threshold was not met. Keep records of where the recipient lives and where the work was performed to determine which rules explore.

Frequently Asked Questions

Do I file a 1099 for payments to a corporation?

Generally no. Payments to C corporations do not require a 1099. However, payments to S corporations, LLCs, and sole proprietorships do require a 1099-NEC if they meet the $600 threshold. If you are unsure whether the recipient is incorporated, ask them directly or check your contract.

What if I paid someone less than $600 but want to report it anyway?

You can file a 1099 for any amount, even below $600. Some business owners do this for record-keeping purposes. The recipient can use it to document their income. There is no penalty for filing a 1099 when you are not required to, as long as the information is accurate.

Can I file a 1099 after January 31 if I forgot?

Yes, but you will owe a penalty. File as soon as you realize the important date passed. If you file within 30 days of January 31, the penalty is $50 per form. The longer you wait, the higher the penalty. Request a penalty waiver if you have a reasonable explanation for the delay.

Who gets a copy of the 1099 and what do they do with it?

The recipient gets Copy B, which they use to report the income on their own tax return. They need it to match their records with what the IRS receives. If they do not receive a 1099 and the IRS has a record of it, they may face an audit or notice asking them to explain the discrepancy.

What if the recipient's address or TIN is wrong on the form I filed?

Contact the IRS and file a corrected 1099 (Form 1099-X for corrections). Send a corrected copy to the recipient as well. Do this as soon as you discover the error, even if it is after January 31. A corrected filing shows good faith and may help reduce penalties if the IRS contacts you.