who do i need to send a 1099 to

You generally need to send a Form 1099 (most often a 1099‑NEC) to non‑employees you paid at least $600 for services during the year, with some important exceptions and special cases.

Core rule in plain English

You typically must issue a 1099‑NEC if, in the course of your trade or business:

• You paid at least $600 total during the year
• To an individual, sole proprietor, single‑member LLC, partnership, or other non‑employee
• For services (labor, professional work, contractor work), not just goods or merchandise

This applies to things like: freelance designers, consultants, bookkeepers, janitorial services, marketing contractors, repair people, and similar service providers.

Who you usually send a 1099 to

For most small businesses, landlords, and side‑hustles, the list commonly includes:

• Independent contractors (freelancers, gig workers) you paid ≥ $600
• Professional services: accountants, marketers, repair techs, IT support, etc., paid ≥ $600
• Single‑member LLCs and partnerships providing services, if not taxed as corporations
• Attorneys and law firms paid ≥ $600 for legal services (even if they are corporations)

A good practical test people use is:

“Did I pay this non‑employee at least $600 for services in my business?”
If yes, and they aren’t clearly a corporation, you likely need a 1099‑NEC.

Who you usually do NOT send a 1099 to

There are several common exclusions:

• Corporations (C‑corps and S‑corps), except certain payments to attorneys and some medical/health‑care payments
• Payments made entirely by credit card or third‑party processors (those are typically reported on 1099‑K instead)
• Pure purchases of goods or merchandise (e.g., hardware stores, lumber yards, big‑box retailers)
• Employees (they get a W‑2, not a 1099)

That is why you usually don’t send 1099s to places like big retail stores or typical product vendors, even if you spent more than $600 there.

How to figure it out in practice

Many businesses follow these steps each year:

1. Make a list of vendors you paid for services in your business (not employees).
2. Total what you paid each of them for the year; flag anyone at or above $600.
3. Check their tax status using Form W‑9 information (whether they’re a corp, LLC, sole prop, etc.).
4. Issue 1099‑NEC to those qualifying vendors and send copies to both the recipient and the IRS by the January deadline.

Deadlines and technical details (like e‑filing thresholds) can change, so checking the IRS’ current guidance for the specific tax year is important.

Important disclaimer

This is general information only and not legal or tax advice for your specific situation. Complex situations (e.g., rentals, construction projects, medical payments, or mixed goods‑and‑services invoices) can have extra rules, so a tax professional or accountant should review your actual payments if you’re unsure.

Bottom note: Information gathered from public forums or data available on the internet and portrayed here.