When Do 1099s Need to Be Issued? Key Deadlines
Understand the critical deadlines for issuing and filing 1099 forms to ensure IRS compliance for non-wage income reporting.
The Internal Revenue Service (IRS) Form 1099 is an information return used to report various types of income received by individuals or entities who are not employees. These forms ensure income earned outside of traditional wages, salaries, and tips is accurately reported to the IRS. For recipients, a 1099 form provides details needed to file their tax returns and account for taxable income. The IRS uses these forms to track and verify payments, supporting tax compliance.
Identifying Income Requiring a 1099
Businesses and individuals must issue 1099 forms for specific payments that meet certain thresholds. Form 1099-NEC reports nonemployee compensation of $600 or more paid to independent contractors, freelancers, or self-employed individuals for services performed in a trade or business. This $600 threshold also applies to miscellaneous income like rents, prizes, and awards, reported on Form 1099-MISC. However, for royalties or broker payments in lieu of dividends or tax-exempt interest, the Form 1099-MISC threshold is $10 or more.
For interest income, financial institutions issue Form 1099-INT when $10 or more is paid to an account holder. Dividends and other distributions from stocks or mutual funds are reported on Form 1099-DIV if they total $10 or more. Payment card and third-party network transactions, often from payment apps or online marketplaces, are reported on Form 1099-K. For the 2024 tax year, the Form 1099-K threshold is $5,000, and it is $2,500 for the 2025 tax year, with a $600 threshold planned for 2026 and beyond.
Deadlines for Sending 1099s to Recipients
Payers must adhere to specific deadlines for furnishing 1099 forms to recipients. For the 2025 tax season, reporting 2024 income, the general deadline for recipients to receive most common 1099 forms is January 31, 2025. This includes Form 1099-NEC for nonemployee compensation, Form 1099-INT for interest income, Form 1099-DIV for dividends, and Form 1099-K for payment card and third-party network transactions.
Exceptions apply to this general January 31 deadline. Forms 1099-B (Proceeds From Broker and Barter Exchange Transactions) and 1099-S (Proceeds From Real Estate Transactions) have a later recipient deadline of February 15, 2025. If amounts are reported in Box 8 (Substitute Payments in Lieu of Dividends or Interest) or Box 10 (Gross Proceeds Paid to an Attorney) of Form 1099-MISC, the recipient due date also shifts to February 15, 2025. If any deadline falls on a weekend or holiday, the due date moves to the next business day.
Deadlines for Filing 1099s with the IRS
Payers must also meet specific deadlines for filing 1099 forms with the IRS. For the 2025 tax season, reporting 2024 income, the filing deadline for Form 1099-NEC with the IRS is January 31, 2025, regardless of whether filed on paper or electronically. This unified deadline ensures timely reporting for nonemployee compensation.
For most other common 1099 forms, including 1099-MISC, 1099-INT, 1099-DIV, and 1099-K, filing deadlines with the IRS vary by method. The paper filing deadline for these forms is February 28, 2025. If filing electronically, the deadline extends to March 31, 2025.
Methods for Issuing and Filing 1099s
Payers have several methods for issuing 1099 forms to recipients and filing them with the IRS. For recipients, forms can be provided via mail using official IRS forms or acceptable substitute statements. Electronic delivery is also permissible, provided the recipient consents to receive statements this way.
Forms can be submitted to the IRS through paper filing or electronic filing. Paper filing involves mailing official IRS forms, often with Form 1096, a summary transmittal form. Electronic filing is conducted through the IRS’s FIRE system, third-party tax software, or payroll services. Businesses filing 10 or more information returns are required to file electronically.