Do Landlords Need to Send 1099s to Contractors? (2026 Rules)
Quick answer
Landlords who operate their rental as a business generally file Form 1099-NEC for each contractor paid for services. Under the IRS instructions for tax year 2026, the threshold for nonemployee compensation is $2,000 or more (it may be adjusted for inflation from 2027). Forms for 2026 are due to contractors and the IRS by January 31, 2027.
Key takeaways
- 2026 threshold for 1099-NEC: $2,000 or more in nonemployee pay.
- Due to both the contractor and the IRS by January 31.
- Collect a W-9 before the first payment.
- Ask a tax professional whether your rental counts as a business.
The 2026 1099-NEC threshold is $2,000
The IRS instructions for Forms 1099-MISC and 1099-NEC state that the minimum reporting threshold for nonemployee compensation increased to $2,000 for tax years beginning after 2025, and may be adjusted for inflation starting in 2027. For years before 2026 the threshold was $600.
| Item | 2026 rule |
|---|---|
| Form | 1099-NEC (nonemployee compensation) |
| Threshold | $2,000 or more paid to one contractor in the year |
| Due to contractor | January 31, 2027 |
| Due to IRS | January 31, 2027 |
Which landlords need to file?
1099 reporting applies to payments made in the course of a trade or business. Whether a rental activity counts as a business depends on your situation, so confirm with a tax professional. Payments to corporations are often exempt, and payments made by credit card or through payment networks may be reported by the processor instead.
How to handle 1099s step by step
- Collect Form W-9 from every contractor before you pay them, for their legal name and taxpayer ID.
- Track payments by contractor throughout the year.
- After year end, identify contractors paid $2,000 or more for services.
- Send each one a 1099-NEC and file with the IRS by January 31.
- Keep copies with your rental records.
Automate it with Blixxy PM+
Blixxy PM+ includes secure digital W-9 collection with tax-ID masking and automatic 1099 preparation. It tracks qualifying owner and contractor payments and prepares 1099-MISC and 1099-NEC forms you can review, download and print from your dashboard.
Frequently asked questions
What is the 1099-NEC threshold for 2026?
Per the IRS instructions for tax year 2026, Form 1099-NEC is filed for nonemployee compensation of $2,000 or more. The threshold may be adjusted for inflation starting in 2027.
When are 1099-NEC forms due?
Form 1099-NEC is due to both the contractor and the IRS by January 31. For 2026 payments, that's January 31, 2027.
Do landlords have to issue 1099s to handymen and plumbers?
If your rental activity is a trade or business and you paid a contractor $2,000 or more for services in 2026, you generally file a 1099-NEC. Confirm your status with a tax professional.
Do I need a W-9 from contractors?
Yes. Collect a Form W-9 before paying a contractor so you have the legal name and taxpayer ID needed to file a 1099.
Sources
- Instructions for Forms 1099-MISC and 1099-NEC — Internal Revenue Service
- About Form 1099-NEC — Internal Revenue Service
- About Form W-9 — Internal Revenue Service
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