--- title: "Prepare Form 1099-NEC From Your Books | MCC Solutions" description: "Mark vendors, run the payments report, resolve missing info and file. Worked example. Check IRS instructions." url: "https://mcc-solutionsnj.com/bookkeeping/guides/form-1099-nec-preparation-from-your-books" --- Bookkeeping guide · Updated October 12, 2026 # Preparing Form 1099-NEC From Your Books Form 1099-NEC reports certain payments you made to people who are not your employees. Getting it right depends on bookkeeping done all year, not on a January scramble. This is a walkthrough of the data side. Check current filing rules and deadlines with the IRS. By [Matthew Coleman](/about), MCC Solutions **Quick answer.** To prepare Form 1099-NEC from your books, flag the vendors who may receive a form during the year and enter their name, address and taxpayer ID from the W-9. Most programs can then total their payments for you. Want this handled for you? Monthly bookkeeping, cleanup and year-end close for small businesses. Start with a free health check of your books. [Free health check](/bookkeeping/health-check)[Get a quote](/bookkeeping/#interest) **Related:** [Closing entries and retained earnings](/bookkeeping/guides/closing-entries-and-retained-earnings) · [Void vs delete a transaction](/bookkeeping/guides/voiding-vs-deleting-transactions) · [NJ 1099 contractor rule (ABC test)](/bookkeeping/guides/nj-independent-contractor-rule-abc-test-2026) **Free tools:** [Contractor vs employee cost](/bookkeeping/contractor-vs-employee-cost-calculator) · [How many sales do I need to break even?](/bookkeeping/break-even-calculator) [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) ## Mark vendors during the year In your accounting software, flag the vendors who may receive a form and enter their name, address and taxpayer ID from the W-9. Most programs can then total payments for you. Without that flag, you must rebuild the list by hand. Do this when you first set the vendor up. A vendor created in March with no W-9 will be a problem in the following January. ## Run the vendor payment report in early January Run the report for the calendar year, using the payment date rather than the bill date. The rules turn on payments actually made in the year. Review it line by line. Check that payments to a corporation, to employees, or reimbursed personal expenses are not mistakenly included, but be careful: whether a payee is exempt is a question for your preparer. Compare the total to the amounts shown in your expense accounts. Differences usually point to a payment coded to the wrong place or to a different account. ## Which payments appear in the report Generally, payments for services by non-corporate payees in the course of your business are reported when they reach the filing threshold. The threshold has changed over time, so verify the current one. Payments for goods are usually not reported on this form. Rent, interest and other types have their own forms. Payments made by credit card or through a payment network are typically reported by the processor, not by you. See our guide on payment apps and 1099 reporting. ## Resolve missing information For vendors with missing forms, send a polite request with a deadline, and explain that you need the information to file. Keep copies of every request. The IRS provides a way to check names and numbers before filing, which helps avoid mismatch notices. If the vendor still refuses, discuss with your preparer how to proceed and whether backup withholding applied. ## Want us to handle it? We prepare your 1099-NEC forms for 2026 payments from the contractor list and W-9s you send, for businesses in any state. **Price:** $9 per form, $29 minimum per order. [Request 1099 preparation](/bookkeeping/1099-nec-filing-service#request) ## File, deliver and keep copies The recipient copy and the IRS copy have due dates that are usually in January, but confirm the current dates. You may file with software or through an authorized provider. Keep copies of the filed forms and the confirmation. If you filed with a state, keep that confirmation as well. Reconcile what you filed to the books one last time, then record any corrections as soon as they come up. Corrected forms exist for errors. ## A January timeline that works In the first week, finish December bookkeeping and run the vendor report. In the second, chase missing forms and check names and numbers. In the third, enter the data into your filing software and review it with your preparer. Leave the last days before the deadline for emergencies, not for ordinary work. If you hire a bookkeeper, ask for the vendor report in mid-December so the first week of January is not a scramble. ## Worked example with numbers Run the vendor payments report for the year. Vendor A shows $4,200 by check and $900 by card, vendor B $1,350 by check. Card payments are generally reported by the processor, so the reportable amount for vendor A is the $4,200 of non-card payments and vendor B is $1,350. Check each against the current IRS threshold and instructions before filing. ## Mistakes that cost money Using the wrong total, including card payments or reimbursed expenses. Missing a W-9. Filing after the deadline. Mislabeling a payment type. ## Check your work Compare the sum of reportable amounts to the contractor expense accounts, and explain the difference. ## Common questions **Can my bookkeeper file the forms?** Many bookkeepers can prepare and file them with your approval, using the data you provide. Confirm who is responsible for deadlines. **Do I issue a 1099-NEC to a vendor paid through PayPal?** Often the payment network reports such payments instead. Ask your preparer about your specific payment methods. **What if I find a missed form after the deadline?** File as soon as you can and ask your preparer about penalties and corrections. This guide is general information, not tax, legal or accounting advice. Rules, fees and due dates change; check with the IRS, the NJ Division of Taxation or a licensed professional for your situation. Let us handle it [### Monthly bookkeeping Categorizing, reconciling and monthly reports, with cleanup, payroll and NJ filings available. Bookkeeping →](/bookkeeping/) More guides - [Paying Contractors by Card or App: 1099 Reporting](/bookkeeping/guides/payment-apps-cards-and-1099-reporting-for-contractors) - [Payroll Basics Before You Hire Your First Employee](/bookkeeping/guides/payroll-basics-before-you-hire-your-first-employee) - [Common Payroll Mistakes Small Employers Make](/bookkeeping/guides/common-payroll-mistakes-small-employers-make) - [How to Reconcile Payroll Liability Accounts](/bookkeeping/guides/reconciling-payroll-liability-accounts) Free tool - [Bookkeeping health check](/bookkeeping/health-check) [All guides](/bookkeeping/guides) Reach small business owners, freelancers and bookkeepers who read this guide: [advertise here](/advertise#bookkeeping). Do it yourself ### Year-End Close and 1099 Kit Close the year cleanly, get 1099s out on time, and hand your accountant everything in one go. [See what's inside ($29)](/toolkits/year-end-close-and-1099-kit) [Free sample](/toolkits/year-end-close-and-1099-kit#free-starter)14-day full refund Free tool: [1099 deadline calculator](/bookkeeping/1099-deadline-calculator) Course: [Small Business Bookkeeping Basics](/courses/small-business-bookkeeping-basics) ($49) covers chart of accounts, reconciliations, the monthly close, payroll and 1099 basics for owners. It is training with a certificate of completion, not a credential. ## Rather have us keep the books? Ask for a quote. [Get a Quote](/bookkeeping/#interest)[Call (908) 444-6373](tel:+19084446373)