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2026 Form W-9 & 1099 Reminder

Sep 23, 2026 | Accounting, Business, Planning, Taxes

2026 Form W-9 & 1099 Reminder

It’s time to start preparing for issuing 2026 Forms 1099-NEC and 1099-MISC. Early preparation helps ensure your 1099s are accurate and filed timely–whether you prepare them internally or we prepare them on your behalf.

***Important 2026 update: For payments made in calendar year 2026, the reporting threshold for Form 1099-NEC and most Form 1099-MISC payments increases from $600 to $2,000 per payee, per year. Beginning in 2027, the $2,000 threshold will be adjusted annually for inflation. (Other 1099 thresholds may remain unchanged.)

Q. Who may need to receive a Form 1099-NEC or 1099-MISC?
– Generally, any individual, partnership, or LLC paid for non-employee compensation, services, or rent totaling $2,000+ in 2026 (e.g., contractors, suppliers, outside service providers, landlords).
– Any attorney paid legal fees totaling $2,000+ in 2026, regardless of entity type.

Q. Who typically does not receive a 1099?
– Most corporations (with exceptions–contact us if unsure).

Q. What should I obtain now?
– A completed Form W-9 from each vendor/contractor (keep on file in case of IRS request). https://www.irs.gov/pub/irs-pdf/fw9.pdf
– Best practice: obtain the W-9 before the first payment.
– If you have a prior-year W-9, confirm it is still accurate (name/address/tax classification).
– Photo ID is not required, but it may help confirm legal name and address.

Q. What happens if I don’t obtain a W-9?
– Potential IRS penalties.
– Potential liability for 24% backup withholding that should have been withheld.

Q. Are credit card and third-party app payments excluded from 1099 totals?
– Often, yes. Credit Card/third-party processor payments (e.g., PayPal, Venmo, Cash App, etc.) may be reported by the processor on Form 1099-K; including them on a 1099-NEC/MISC can create double reporting.
– In QuickBooks/QuickBooks Online, credit card payments are generally excluded from 1099 reporting; otherwise you may need to exclude them manually.
– Best practice in any accounting software: record the processor as the “Payee” and note the actual vendor/contractor in the memo.

Q. Do I report Zelle payments?
– Yes. Zelle generally does not report payments like third-party processors.

As always, we are here to assist you. Please call us with any questions regarding the information above or if you would like help organizing vendor information or preparing your 2026 Forms 1099.

Thank you,
Your friends at Gray CPA

QuickBooks Online- How to Set-Up Vendors for 1099’s in Quickbooks Online (youtube.com)
QuickBooks Desktop – How to setup Vendors from a W9 to receive 1099’s in QuickBooks – YouTube