When Are 1099s Due in 2025?

What is a 1099 form?

1099 forms are tax documents that outline what independent contractors (like you!) earn during the tax year. There are different types of 1099s, including 1099-MISC, 1099-K and 1099-NEC. More on that later, but they all serve the same general purpose. The forms officially document what you earn as an independent contractor, and the government uses that information to collect taxes.  

Since you’ll be receiving the form from clients who’ve paid you for your services, you just have to wait for it to arrive. The Internal Revenue Service (IRS) generally requires companies to send the forms by January 31. (The IRS also receives a copy.) Your job is then to review the form and document your earnings on your tax return.

Remember, you’re still responsible for paying taxes on your income if you don’t receive the form by the due date. Most companies abide by the rules to avoid penalties and late fees, but there’s always a chance something could go wrong. That’s why tracking your earnings and income throughout the calendar year is essential.

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What are the different types of 1099 forms?

There are a lot of 1099 forms. You probably don’t need to know every type of 1099, but it’s good to know the most common ones so you know what to expect as a recipient. (If you’re an overachiever, view the complete list of 1099 forms on the IRS website.)

Most independent contractors will receive a 1099-K, 1099-NEC or 1099-MISC. Depending on the type of income you earn, you might receive more than one type of form.

Here’s what you need to know about the most common 1099 forms.

• Form 1099-K: If you earn over $20,000 from online marketplaces (hey, Poshmark!) or digital payment apps (looking at you, Venmo and PayPal), you can expect a 1099-K
• Form 1099-NEC: This form is for nonemployee compensation. You’ll receive a 1099-NEC for most types of freelance or contract work, including work as a rideshare driver, food delivery person, freelance writer and consultant
• Form 1099-MISC: If you receive income from rental properties, royalties, awards or prizes, you can expect a 1099-MISC form
  

Whichever of these three forms you receive, Keeper can help you make sense of them. Just upload your forms on the Keeper app and we’ll help you file correctly.

Who receives a 1099 form?

You should receive Form 1099-NEC in the mail (or digitally, if you’ve opted into that on your platform of choice) if you earn more than $600 in nonemployee compensation or royalties. If you earn more than $20,000 from an online payment app or marketplace, you will get a 1099-K form.

For example, imagine you work full-time as a social media manager. Your friend from college runs an online shop, and she asks if you can help her with social media for a few hours per month. You agree, which means you earn an extra $6,000 throughout the year. She should send you a 1099-NEC for that work.

The number of 1099 forms you receive can balloon quickly, especially if you work with a lot of clients. Jackie Lam, a money coach and personal finance writer, explains her process for handling an influx of 1099 forms during tax season. She says, “I digitize it once most of the 1009s come in. That way, everything is in one place — all the [digital] 1099s and all the physical 1099s are in one place on my computer.”

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When are 1099 forms due to contractors?

In most cases, the IRS requires businesses to send 1099 forms to contractors by January 31 (or the next business day if January 31 falls on a weekend). Since mail can take time to arrive, freelancers may receive forms a few days (or even weeks!) after the deadline — but don’t panic if that's the case. Taxes aren’t due until April 15, which gives you time to review your forms and complete your return.

What should you do if your 1099 is late?

If a few weeks pass and you haven’t received the form, contact the company that owes you the form. If you still don’t have the form by February 15, you can contact the IRS at 1-800-829-1040 if you’d like. You might also be able to find the missing income information from a different source, like your bank account statements or business records. For more tips, check out Keeper's guide to late 1099 forms.

What should you do if you don’t receive a 1099?

If you don’t receive a 1099 form, you must still claim the income on your tax return. (Sorry.) Again, try to find the income information from a different source if you can — check your bank account for deposits, review emails for contracts, or consult invoices or other records.

How to use your 1099 to file your taxes

Your 1099 provides information about the income you need to claim on your tax return, but it’s not actually part of your tax return. Instead, you’ll use your 1099 forms to complete your Schedule C, which you’ll then include in your tax return filings.

You need one Schedule C form for every type of business you have. So, if you sell t-shirts at local markets and teach online pottery classes, you will complete separate forms for each.

The Schedule C form has sections for personal information like your social security and business information. There’s also an entire section for business earnings and expenses — that’s where your 1099 forms come in handy. Use the forms to calculate your total earnings and record the amount on your Schedule C.

Even though 1099 forms signify that tax season is approaching, you can (and probably should) prepare all year, according to Lam. “I just think tax preparation is a year-long thing, a year-round thing. It’s not just now or during January or whatever,” says Lam. “It’s not the most exciting thing, but it’s important to do because if you don’t stay organized throughout the year, you know how crazy you can get at the last minute to get all that information together and make sure it’s accurate.”

One way to stay organized is with Keeper. On the Keeper app, you can track all your business expenses for the year on one handy dashboard, which means you’ll be ready to maximize your tax write-offs when it’s time to file. You’ll also have round-the-clock access to tax experts, so you can get quick, accurate assistance if you need it. Filing with Keeper is quick and easy, too — most users are able to file in under an hour.

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Changes in 1099-K rules for 2023

You can expect a 1099-K form if you receive over $20,000 of business payments from online payment processors (like PayPay or Venmo) or through digital marketplaces (like Poshmark). There’s been some behind-the-scenes chaos with the IRS changing the income threshold for reporting and then changing it back again.

But here’s what you need to know as an independent contractor expecting a 1099-K for the 2023 tax year: You will receive a form if you earn more than $20,000 over more than 200 transactions from an online payment app or marketplace. The IRS has plans to decrease the minimum reporting threshold to $5,000 for the 2024 tax year. But for now, it’s still $20,000.

1099 forms can be a little overwhelming, but they are a helpful way to track your income and ensure you complete your tax returns correctly. It’s a good idea to review your forms as you receive them to plan for your taxes. But it’s equally (if not more!) important to track how much you earn and owe throughout the year so you’re not reliant on a tax form. The good news? Keeper simplifies the process.