If your practice paid someone who isn't an employee for their work, you may need to send them a 1099-NEC and file it with the IRS by January 31. For payments made in 2026, the reporting threshold rose to $2,000 per person. Your CPA has the final word on who gets one.
Who usually gets one
A 1099-NEC reports what you paid a contractor for services. For a DPC practice, that often includes:
- A contract provider or nurse who covers shifts.
- A cleaning service run by one person.
- A freelance designer, marketer or IT person.
- An attorney, even one set up as a corporation.
Payments to most corporations don't need one. Attorneys are an exception, and so are medical and health care payments, which can go on a 1099-MISC. Payments to your own employees don't need one either, since they get a W-2.
The 2026 threshold
For years, the line was $600. For payments made in 2026, it's $2,000 per person for the year. That means the forms you file by January 31, 2027 use the $2,000 line. Starting with 2027 payments, the amount is set to adjust for inflation.
In a made-up example, you paid a freelance designer $1,400 this year and a contract nurse $9,800. Under the new threshold, the nurse gets a 1099-NEC and the designer likely doesn't. Under the old $600 line, both would have. Confirm the list with your CPA before you file.
Card payments are different
If you paid a contractor by credit card or through a payment app that handles reporting, the card company or app reports it, not you. That's one reason to track how each contractor was paid, not only how much.
By when
The 1099-NEC is due to the contractor and to the IRS by January 31. If you file 10 or more information returns in a year, the IRS requires you to file them electronically. Many payroll providers and bookkeeping services file them for you.
Get the W-9 first
The W-9 gives you the contractor's legal name, tax ID and business type. Ask for it before the first payment, not in January when you're chasing people. If a contractor won't give you one, ask your CPA what to do before you pay them again.
How your books help
When every contractor is set up as a vendor and every payment goes to them by name, the year-end list takes minutes. When payments go out as vague transfers, someone has to rebuild the list in January. Your bookkeeper can pull a report of payments by vendor, and that becomes your 1099 list.
What I'd do this week
- Pull a list of everyone you paid this year who isn't on payroll, with totals.
- Mark how each one was paid: check, bank transfer, card or app.
- Request W-9s now from anyone at or over $2,000 who doesn't have one on file.
Common questions
Do I send a 1099 to my landlord?
Rent can go on a different form, the 1099-MISC, depending on who your landlord is. Ask your CPA whether yours needs one.
What if I miss the January 31 deadline?
File as soon as you can. Penalties grow the longer a form is late. Tell your CPA so they can help you catch up.
Is a contract provider an employee or a contractor?
It depends on how the work is set up, and the rules are specific. Talk to your CPA or an employment attorney before you decide.
Want your 1099 list ready in January?
We record every contractor payment by vendor during the monthly close, so your 1099 list is a report, not a project. If that's what you need, apply to work with us.