When Businesses Must Send You a 1099 Form

The IRS requires 1099 forms to be issued by January 31 of the year following the payment, but the important date for the business to send it to you is different from the important date to send it to the IRS.

If you received payments for work, freelance services, rental income, or other non-employment income during the year, the person or business that paid you must send you a 1099 form by January 31 of the following year. This is the important date that matters to you as the recipient. The business has until the same date to file a copy with the IRS, though they may file electronically by a later date depending on the form type.

The specific form you receive depends on what kind of payment it was. A 1099-NEC goes to independent contractors and self-employed people. A 1099-MISC covers miscellaneous income like royalties or prizes. A 1099-INT reports interest income from banks or investment accounts. Each form has the same January 31 important date, but the type of income determines which form the payer must use.

Key Takeaways

• Businesses must send you a 1099 form by January 31 of the year after you received the payment.
• A 1099-NEC is used for independent contractor and self-employed income; a 1099-MISC covers other types of non-employment income like royalties.
• The payer must report the same information to the IRS on the same important date, so the IRS will know about your income even if you don't receive the form.
• If you don't receive a 1099 by early February, contact the payer directly to ask for it, because you are still required to report that income on your tax return.

Who is required to issue a 1099

Not every payment triggers a 1099. The payer must issue one only if the payment meets a dollar threshold and falls into a category the IRS tracks. For 1099-NEC (contractor income), the threshold is $600 in a calendar year. For 1099-MISC, the threshold is also $600 for most categories, though some types of miscellaneous income have different thresholds or no threshold at all.

A business that pays you by credit card or payment app like PayPal, Venmo, or Square may also issue a 1099-K instead of a 1099-NEC, depending on the payment volume and the payer's setup. The rules around 1099-K reporting have changed in recent years, so the threshold and timing may vary. The key point is that if you received $600 or more from a single source for non-employment work, you should expect a 1099 form.

Payments to corporations are usually exempt from 1099 reporting, even if they exceed the threshold. If you operate as a sole proprietor or partnership, you will receive a 1099. If you are incorporated, you typically will not, though there are exceptions for certain types of income.

What happens if you don't receive a 1099 by January 31

If the important date passes and you have not received the form, your first step is to contact the payer directly. Call or email and ask for the 1099. Many businesses issue forms late, and a straightforward request often gets you the form within a few days. Keep a record of when you asked and what response you received.

If the payer says they did not issue one because the payment was below their threshold, ask them to confirm the total amount they paid you. If you believe the amount was $600 or more, you may need to report the income anyway on your tax return, even without the form. The IRS expects you to report all income, whether or not you receive a 1099.

If the payer refuses to send a 1099 or cannot be reached, you can file a complaint with the IRS using Form 3115 or by calling the IRS at 1-800-829-1040. However, this does not change your obligation to report the income on your return. Report what you know about the payment — the date, the amount, and the payer's name — and keep any documentation you have, such as invoices, emails, or bank statements showing the deposit.

The difference between the January 31 important date and the IRS filing important date

The January 31 important date is when the payer must send the form to you and file a copy with the IRS. However, the IRS allows businesses filing electronically to submit 1099 forms by a later date if they file a large volume of forms. This extension does not change your important date — you still need the form by January 31 to file your own return on time.

If a payer files their 1099 with the IRS late, the IRS will still receive the information eventually. This means the IRS may have a record of your income even if you do not receive the form until February or later. If you file your return before receiving a late 1099, you may need to file an amended return once the form arrives, or the IRS may contact you if your reported income does not match what the payer reported.

How to handle multiple 1099s from the same payer

Sometimes you receive more than one 1099 from the same business in the same year. This can happen if the payer uses different accounting systems, processes payments through multiple subsidiaries, or makes a mistake. Before assuming there is an error, add up all the 1099s to see if the total matches what you actually received.

If you received multiple 1099s and the total is correct, you must report all of them on your tax return. Do not combine them into one line item. List each 1099 separately on your return, or follow the instructions for your tax software, which will usually prompt you to enter each form.

If the total on all the 1099s exceeds what you actually received, contact the payer and ask them to issue a corrected form. The payer can file a corrected 1099 with the IRS at any time, though it is best to resolve this before you file your return. If you have already filed and then receive a corrected 1099 showing a lower amount, you may need to file an amended return.

What to do if a 1099 shows the wrong amount

If the 1099 you receive shows an amount that does not match what you were actually paid, contact the payer when ready and ask for a corrected form. The payer can issue a corrected 1099 (marked as "CORRECTED" on the form) and file it with the IRS. You do not need to do anything until you receive the corrected form.

If the payer refuses to correct the form or claims the amount is accurate when you know it is not, gather your documentation. Collect invoices, contracts, bank statements, emails, or any other record showing what you were actually paid. When you file your tax return, report the amount you actually received, not the amount on the 1099. Include a note explaining the discrepancy if your tax software allows it, or be prepared to explain it if the IRS contacts you.

The IRS will compare what you report to what the payer reported. If there is a mismatch, the IRS may send you a notice asking you to explain. Having documentation of your actual income protects you in this situation. You are not required to report an incorrect amount just because it appears on a 1099.

1099s and estimated tax payments

If you receive 1099 income, you may be required to make quarterly estimated tax payments to the IRS. These payments are due on April 15, June 15, September 15, and January 15 of the following year. The requirement depends on how much tax you expect to owe and whether you had tax withheld from other income.

The 1099 forms you receive in January do not affect your estimated tax payments for that same year, because those payments were due in the previous year. However, the 1099 income you received in the current year may require you to make estimated payments in the current year for taxes on that income. If you are unsure whether you need to make estimated payments, consult a tax professional or use the IRS Form 1040-ES worksheet to calculate your requirement.

Frequently Asked Questions

Can a business issue a 1099 after January 31?

Yes, but it is late. The business should have sent it by January 31. If you receive a 1099 in February or later, it is still valid and you must report the income. If the late 1099 shows income you did not report on your return, you may need to file an amended return or the IRS may contact you about the discrepancy.

Do I have to report 1099 income if I don't receive the form?

Yes. You are required to report all income on your tax return, whether or not you receive a 1099. If you received payment for work or services, report it even if the payer did not send you a form. The IRS may have a record of the payment anyway if the payer reported it.

What if I received a 1099 for income I didn't actually receive?

Contact the payer when ready and ask for a corrected form showing the correct amount or zero if you did not receive the payment. If the payer refuses or cannot be reached, report the actual amount you received on your tax return and keep documentation of your communication with the payer. You can also file a complaint with the IRS if you believe the 1099 is fraudulent.

Do I need to receive a 1099 to claim business expenses?

No. You can deduct business expenses on your tax return whether or not you received a 1099 for the income. However, you must still report the income itself. Keep receipts and records of your expenses to support your deductions if the IRS asks.

What is the difference between a 1099-NEC and a 1099-MISC?

A 1099-NEC is used for payments to independent contractors and self-employed people for services. A 1099-MISC is used for other types of non-employment income, such as royalties, prizes, rental income, or payments from a settlement. The form type depends on the category of income, not the amount.