Preparing for 1099s: What Every Business Owner Should Know
Tax season can sneak up fast — and one of the most common year-end tasks for small business owners is filing 1099 forms. At DKC Bookkeeping, we help entrepreneurs and small businesses stay organized all year long so that you can file your 1099s correctly and on time — without the last-minute stress.
This guide breaks down everything you need to know about 1099s: who needs them, when they’re due, and how to prepare.
What Is a 1099 Form?
A 1099 form is an IRS document used to report payments made to independent contractors, freelancers, and service providers. Most businesses will issue Form 1099-NEC for non-employee compensation — any payments totaling $600 or more during the tax year.
If you paid someone for services related to your business (not through payroll), the IRS wants that reported. Filing the correct 1099s helps keep your business compliant and your records clean for tax season.
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Who Needs a 1099?
You’ll need to issue a 1099-NEC if:
You paid $600 or more for business-related services.
The worker is not your employee.
The vendor is an individual, partnership, or LLC (not a corporation, except for attorney or medical payments).
Examples of 1099 vendors:
Freelance designers, writers, or marketers.
Independent consultants and bookkeepers.
Tradespeople and repair contractors.
Virtual assistants or social media managers.
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1099 Filing Deadlines
Mark your calendar!
Send to recipients: January 31
File with the IRS: January 31 (for both paper and electronic filing)
Waiting until late January to get started can lead to errors or penalties. Getting your 1099s organized early keeps your business ahead of the curve.
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How to Prepare for 1099 Season
Here’s how to simplify your 1099 preparation process:
Collect W-9 forms before paying any new contractor.
Keep detailed payment records throughout the year.
Review vendor information — make sure names, addresses, and TINs match their W-9.
Use bookkeeping software to track who qualifies for a 1099.
File electronically for faster, more accurate processing.
If you’re already using DKC Bookkeeping, we’ll make sure your reports are clean and ready to go when it’s time to file.
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Common 1099 Mistakes to Avoid
Even well-organized business owners can slip up. Watch for these:
Not sending 1099s for payments made via check or bank transfer.
Mixing personal and business payments.
Issuing 1099s for PayPal or credit card payments (these are reported separately on Form 1099-K).
A quick review from your bookkeeper can save you from unnecessary fines or re-filings.
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Simplify Your 1099 Filing with DKC Bookkeeping
At DKC Bookkeeping, we specialize in helping small business owners stay organized and stress-free during tax season. We’ll help you:
✅ Identify which vendors need 1099s
✅ Review and verify payment data
✅ File accurately and on time
When your books are in order, tax season becomes just another business milestone — not a scramble.
✨ Let’s make your 1099 season smooth and straightforward.
Contact DKC Bookkeeping today to schedule your 1099 review and filing support.
