US 1099 Reporting

Who you paid is the easy half

Totalling what each vendor received is arithmetic. The work is everything that comes off that number afterwards - and every one of those subtractions is a rule someone gets wrong every January.

This app applies them, holds the payee paperwork a filing needs, and tells you what would be rejected before you send it rather than after.

A 2026 run: gross paid, what came off as card settlement, what is actually reportable, and which payees would be rejected.

Corporations, and the two exceptions

Payments to a C or S corporation are generally not reported, so they come off. The exceptions are the part people miss: gross proceeds paid to an attorney and payments for medical or health care services stay reportable even when the payee is a corporation. Both are handled, not left to you to remember.

Card and payment-network settlements

Anything settled by card or through a payment network is reported by the processor on a Form 1099‑K. Reporting it again on a 1099‑NEC double-counts the payee. Mark the journals that settle that way and those amounts are removed - shown on the line, not silently netted, so a payee who asks gets an answer.

The paperwork, before it blocks you

Tax classification as stated on the W-9, the TIN and its type, whether the W-9 is on file and when it arrived. Every reportable payee missing any of it is counted on the run, so the chase happens in December rather than the week the filing is due.

Taxpayer numbers are treated as sensitive

The TIN is visible to accounting managers only; everyone else sees the last four digits, which is enough to identify a payee and not enough to misuse. The export leaves full numbers out unless you explicitly ask for them.

The threshold moved, and it moves again

For payments made on or after 1 January 2026 the threshold is $2,000, up from the $600 that had stood since 1954, and the IRS indexes it to inflation every year from 2027. That figure lives in an editable per-year table rather than in the code, so a new year is a line you add - not a release you wait for. Ask about a year it has not been given and it says so instead of quietly using the last one it knows.