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How to Get Ahead of 1099-NEC Filing Season — And Avoid January Chaos

  • Writer: David Freeze
    David Freeze
  • Aug 11, 2025
  • 2 min read

Updated: Sep 27, 2025


If you paid independent contractors in 2025, your 1099-NEC filing deadline is February 2, 2026.That may sound far away, but here’s the truth: waiting until January to start is too late.


1099 compliance isn’t just a matter of filling out forms — it’s about collecting the right information, verifying it, and filing on time to avoid penalties. The earlier you start, the easier it will be.



Why Starting Now Matters


  • The IRS has no patience for late filings. Penalties start at $60 per form and can quickly add up.

  • January is the busiest month of the year for many businesses — adding 1099 prep to the pile invites mistakes.

  • Contractors disappear. Once the holidays hit, it’s harder to get missing W-9s or correct information.


Who Needs to File a 1099-NEC


You must file if you:


  • Paid $600 or more in 2025 to a non-employee for services.

  • Made the payment in the course of your business (not personal).

  • Paid via check, ACH, or cash (credit card payments don’t require a 1099).



What About Venmo, Zelle, or PayPal?


This is one of the most common points of confusion.


  • Payments through PayPal or a credit card are generally not reported on your 1099-NEC — the payment platform reports them on Form 1099-K instead.

  • Payments through Zelle are treated like a direct bank transfer — you do need to include them on a 1099-NEC if they meet the $600 threshold.

  • Payments through Venmo depend on whether it was a personal or business account. If you use a personal Venmo account, it’s treated like cash/ACH and must be included on a 1099-NEC. If it’s a business account, Venmo should handle reporting via Form 1099-K — but always verify.


When in doubt, ask your CPA to confirm so you’re not missing required forms.



Your August-to-December Action Plan


  1. Collect W-9s Now – Every contractor should give you a completed Form W-9 before they receive payment. If you haven’t collected one yet, don’t wait.

  2. Verify Details – Check names, taxpayer identification numbers, and addresses for accuracy.

  3. Tally Payments – Keep a running total for each contractor through December.

  4. Confirm Addresses & Emails – You’ll need these for both mailing and electronic delivery.

  5. Be Ready to File in Early January – The sooner you’re ready, the more breathing room you’ll have before the deadline.


The Bottom Line


The 1099-NEC deadline isn’t moving, and neither should your timeline.


By starting now — before the holidays — you’ll avoid the January scramble, reduce stress, and protect your business from costly penalties.


📅 See how our process works — including key dates and requirements — here:


 
 
 

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