When Are 1099s Due to Contractors and the IRS?

For the 2025 tax year (forms issued in 2026), businesses that pay contractors and service vendors must meet specific deadlines for providing 1099 copies to recipients and filing those forms with the IRS.

While many people think of “the 1099 deadline” as a single date, 1099 deadlines vary by form type. Which deadline applies depends on:

  • What the payment was for
  • How the payment was made
  • Whether the recipient is a U.S. or non-U.S. person

Understanding these distinctions upfront is essential to meeting the correct filing deadline and avoiding penalties.

Why do 1099 Deadlines Depend on the Form Type?

The IRS assigns different deadlines to different 1099 forms based on compliance risk and reporting purposes. For contractor payments, the most relevant forms are:

  • Form 1099-NEC
  • Form 1099-K
  • Form 1042-S (for non-U.S. contractors)

Knowing which form applies is what determines which deadline you must meet.

When Does Form 1099-NEC Apply and When Is It Due?

Form 1099-NEC (Nonemployee Compensation) is used to report payments for services performed by independent contractors and other non-employees.

You generally must file Form 1099-NEC when:

  • You paid $600 or more during the year
  • The payment was for services
  • The recipient is not an employee
  • Payment was made by cash, check, ACH, or direct deposit

1099-NEC Deadlines for 2026

  • Recipient copy due: February 2, 2026
  • IRS filing due: February 2, 2026 (paper or electronic)

Form 1099-NEC has the earliest IRS filing deadline, making correct classification especially important.

When Does Form 1099-K Apply and When Is It Due?

In some cases, businesses do not report contractor payments themselves.

Payments made to contractors via:

  • Credit cards
  • Debit cards
  • Payment apps or third-party platforms (such as PayPal, Venmo, Stripe, Square)

are generally reported on Form 1099-K by the payment settlement entity, not by the business.

Why this matters for deadlines

  • Form 1099-K follows different reporting rules and timelines
  • Businesses should not issue Form 1099-NEC for those same payments
  • Duplicate reporting can lead to IRS matching errors and corrections

1099-K Deadlines for 2026

  • Recipient copy due: February 2, 2026
  • IRS filing due:
    • March 2, 2026 (paper)
    • March 31, 2026 (electronic)

Before assuming a February 2 filing deadline applies, businesses must confirm how contractors were paid.

When Do Contractor Payments Require Form 1042-S Instead of a 1099?

Form 1042-S applies when payments are made to non-U.S. contractors or vendors.

This form is required when:

  • The recipient is not a U.S. person
  • A W-8 form is provided instead of a W-9
  • U.S.-source income and withholding rules apply

1042-S Deadlines for 2026

  • Recipient copy due: March 16, 2026
  • IRS filing due: March 16, 2026

While Form 1042-S is not a 1099, it often comes up during contractor reviews and should be included in deadline planning for cross-border payments.

How Can You Tell Which 1099 or 1042-S Deadline Applies?

The table below summarizes which form applies and which deadline you must meet, based on payment type, payment method, and recipient status.

Payment ScenarioWho Is PaidHow They Are PaidForm IssuedWho Files ItRecipient Copy DueIRS Filing Due
Services performed by an independent contractorU.S. contractorCash, check, ACH, direct deposit1099-NECBusiness payerFeb 2, 2026Feb 2, 2026
Services performed by an independent contractorU.S. contractorCredit/debit card, payment app1099-KPayment processorFeb 2, 2026Mar 2 / Mar 31, 2026
Services performed by a non-U.S. contractorForeign contractorAny payment method1042-SWithholding agentMar 16, 2026Mar 16, 2026

Know the Form, Know the Deadline

When it comes to contractor reporting, the biggest compliance risk is assuming all 1099s follow the same deadline. As this guide shows, deadlines depend on which form applies, and that determination hinges on how contractors are paid and who they are.

For the 2025 tax year:

  • Form 1099-NEC has the earliest and most unforgiving deadline
  • Form 1099-K may shift reporting responsibility away from the business entirely
  • Form 1042-S introduces different rules and later deadlines for non-U.S. contractors

Taking time upfront to review payment methods, vendor classifications, and tax forms can help businesses avoid missed deadlines, duplicate reporting, IRS notices, and costly corrections.

With accurate classification and a clear filing plan, meeting 1099 and 1042-S deadlines becomes far more manageable and far less stressful.

FAQs

When are 1099s due to contractors in 2026?

Most 1099 recipient copies are due by February 2, 2026, for the 2025 tax year.

What is the IRS deadline for filing Form 1099-NEC in 2026?

Form 1099-NEC must be filed with the IRS by February 2, 2026, whether filed electronically or by paper.

Do I need to report contractor payments made through PayPal or Venmo?

No. Those payments are generally reported on Form 1099-K by the payment processor.

Do I need to send a 1099 to an LLC or corporation?

It depends. Most payments to corporations are exempt from 1099 reporting, but there are exceptions. For example, payments for legal services generally must be reported even if the provider is a corporation. Always review the vendor’s W-9 to confirm their tax classification.

Do sole proprietors always receive a 1099?

Not always. Sole proprietors generally receive a 1099 when they are paid $600 or more for services during the year, but payments made by credit card or payment apps are typically reported on Form 1099-K instead of Form 1099-NEC.

Can a contractor receive more than one 1099 form?

Yes. A contractor may receive multiple forms if they were paid for different types of income with different reporting requirements.

Is Form 1042-S used instead of a 1099 for foreign contractors?

Yes. Payments to non-U.S. contractors are generally reported on Form 1042-S, which has different deadlines and withholding rules.

Get started with 1099Pro Cloud to stay compliant this tax season.

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