There are 2 types of 1099 forms.
Threshold Increase: The reporting threshold for Form 1099-NEC has increased from $600 (2025 taxes) to $2,000 (2026 taxes). Payments under $2,000 to a single vendor in 2026 will not require a 1099-NEC, even though they would have under the old $600 threshold.
The Form 1099-NEC must usually be in the mail or e-filed by January 31 of each year, but any time after January 1 is fine. One copy goes to the person or business, another copy goes to the IRS along with Form 1096 as a coversheet.
The deadline for filing Form 1099-MISC is usually the end of February of each year, but you have to give a copy to the recipient by January 31 so let's just file them by January 31 as well.
Ignoring Form 1099-NEC or 1099-MISC is not a good option. The current penalty for failure to file the 2026 Form 1099-NEC by the deadline is from $60 to $340 per form, depending on how long past the deadline the form is issued.
Intentionally disregarding the requirement to file is subject to a minimum penalty of $680 per form, or 10% of the income reported on the form, with no maximum.
The dates and penalties can change each year so it is good to look them up to verify.
If the answers are yes, the IRS requires that you fill out a Form 1099-NEC, giving one copy to the contractor and filing one copy with the IRS.
This does not apply to anyone who has been paid as an employee. Remember, the letters “NEC” stand for “Nonemployee Compensation.” So, if your church is paying someone as an employee through Conference Local Payroll, you do not need to file a 1099-NEC on their income.
You also do not need to file 1099 on money paid to businesses that are incorporated in your state.
You also do not need to file a 1099 if the combined yearly total paid to a person or contractor was under the reporting threshold.
Exception: The "reporting threshold" rule doesn’t apply to Conference employees. If your church gave financial assistance or a gift of any amount to your pastor, teacher, or other church employee, including someone on local payroll, a Form 1099-NEC must be issued to that church employee for the amount of that gift or payment.
Here is a detailed list that will help you begin to sort it all out. Don’t start making your list yet. Jewel will help you with that in 1099s - Quick Start or in more detail in 1099s - Report Generation Details. Just study this list for now.
Form 1099-NEC is needed if checks totaling more than the reporting threshold in a calendar year are paid directly to/for:
Form 1099-NEC is not needed for checks to/for:
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The original version of this page was provided to Jewel by the Georgia-Cumberland Conference Audit Team. Created by Linda McCabe.