📑 1099 Season: Tips to Get Ready Before the Deadline

January might feel far away when you’re busy running your business—but the IRS 1099-NEC and 1099-MISC filing deadline comes up fast. If you work with independent contractors, freelancers, or vendors, getting organized now will save you headaches (and possible penalties) later.

Here’s your quick guide to staying ahead of the 1099 rush.

1️⃣ Know Who Needs a 1099

Not every payment you make to a person or business needs a 1099. Generally, you’ll need to file a 1099-NEC if you paid:

• $600 or more during the year for services (not goods)

• To an individual, partnership, or LLC (corporations are usually exempt, but there are exceptions)

• Payments were made via cash, check, or ACH (credit card and PayPal payments are reported by the processor instead)

💡 Pro Tip: Double-check vendors who might have slipped under your radar, like designers, marketing consultants, or one-time project help.

2️⃣ Gather W-9s Now

Before you can file a 1099, you need your vendor’s legal name, address, and tax ID number. The easiest way to collect it is with a Form W-9.

• Best practice: Request a W-9 from every contractor before you pay them for the first time.

• If you’re missing one now, reach out immediately—waiting until January is a recipe for stress.

3️⃣ Verify Payment Totals

Run a vendor report from your bookkeeping system to see total payments for each contractor. Make sure:

• The amounts match your bank records

• You exclude any credit card/PayPal payments

• You separate reimbursed expenses from service fees if needed

4️⃣ Decide How You’ll File

You can file 1099s by:

• Paper filing (must be mailed and postmarked by January 31—slower and more error-prone)

• E-filing (faster, often cheaper, and you get instant confirmation)

Many payroll services and accounting platforms offer 1099 e-filing. If you want a pro to handle it, start the conversation early—January is our busiest time!

5️⃣ Avoid Last-Minute Scrambles

Set a soft deadline for yourself in early January to finalize vendor info and payment amounts. That way, if there are any missing W-9s or errors, you still have time to fix them before the official January 31 deadline.

✅ Bottom Line: The earlier you start gathering vendor details and payment records, the smoother your 1099 season will be. A little prep now means less stress (and fewer IRS penalties) later.

📌 Need help with your 1099s this year? At Oddo Financial Services, we can prepare and e-file your forms so you can focus on running your business—not chasing paperwork. Call us at 505-379-1979 or email info@oddofinancialservices.com to get started.