Guide for rental owners
Do I need to send 1099s to my contractors?
When landlords file Form 1099-NEC for the people they pay, and how to stay ahead of it.
If you pay a plumber, handyman or cleaner for your rental, you may need to send them a Form 1099-NEC after the year ends, and file a copy with the IRS. It's one of the most commonly missed landlord tasks.
When it usually applies
- You paid someone for services for your rental (labor, not just materials).
- They're not a corporation (attorneys are the exception: they get a 1099 either way).
- Your payments to them for the year reached the reporting threshold. That was $600 for many years; a 2025 law raises it to $2,000 for payments made in 2026 and later. Your CPA will confirm the right number for your year.
- Your rental counts as a trade or business. Many do; whether yours does is a question for your CPA.
Paid by credit card or a payment app? Those payments are generally reported by the card company or app (on Form 1099-K), not by you.
The deadline
Form 1099-NEC is due to the contractor and to the IRS by January 31. Missing it can mean penalties per form, which add up quickly.
Make it easy: get a W-9 first
Ask every new contractor for a Form W-9 (their name, address and taxpayer ID) before you pay them. Chasing it in January is much harder.
Example
Your roofer and your HVAC company were each paid well over the limit this year → two 1099-NECs due January 31. Your handyman, paid $450 total, needs none.
Tethered Properties does this for you
Tethered Properties keeps a running total by payee, and your year-end report lists every one that may need a 1099, so you and your CPA can take care of them before January 31.
This guide is general information for rental owners, not tax advice. Tax rules change and every situation is different; your CPA or tax advisor knows your full picture. Figures are estimates.