Overview

Form 1099-NEC is the IRS information return used by businesses to report non-employee compensation - payments made to independent contractors, freelancers, consultants, attorneys, and other service providers who are not on payroll. This form must be filed with the IRS and a copy must be furnished to the corresponding recipient.

Under the One Big Beautiful Bill Act (OBBBA), the 1099-NEC reporting threshold increased from $600 to $2,000 for payments made in the 2026 tax year.

1099-NEC automation with TaxBandits API

The TaxBandits API enables you to automate 1099-NEC filing directly from your existing systems. Depending on how your platform manages payment data, you can choose the approach that fits your workflow.

Automate end-to-end 1099-NEC cycle

Collect W-9/W-8 forms from recipients, validate their TINs against the IRS database, record transactions as payments occur, then generate and file 1099-NEC forms at year-end.

Best for: Platforms that onboard contractors or vendors and need to collect and validate recipient tax details before recording payments and filing.

Record transactions, generate 1099-NEC at year-end

If you already have recipient data on file, record payments as transactions throughout the year using the 1099Transactions endpoints. At year-end, the API aggregates them per recipient and generates 1099-NEC records automatically.

Best for: Gig platforms, freelance marketplaces, and affiliate payout systems where contractors are paid multiple times throughout the year.

Create and file 1099-NEC directly

If you already have recipient data and annual payment totals in your system, use the API endpoints to create and transmit 1099-NEC forms directly.

Best for: Payroll software, accounting platforms, and HCM tools that already maintain contractor payment records and simply need a reliable way to file.

Learn more about workflows

Supported tax years

TaxBandits API supports e-filing of Form 1099-NEC for the following tax years:

Tax Year	API Version
2026	v2.0.0
2025	v2.0.0, v1.7.3
2024	v1.7.3

Services offered by TaxBandits API

The TaxBandits API supports the following services for Form 1099-NEC:

• Federal & State Filing - E-file Form 1099-NEC with the IRS.
• State-Only Filing - E-file Form 1099-NEC with the applicable states.
• Postal Mailing - Distribute recipient copies of Form 1099-NEC via postal mail.
• Online Access - Share digital copies of Form 1099-NEC with recipients through a secure online portal.

These services aren't limited to combined filing — you can opt for State-Only Filing (if you've already filed with the IRS), Postal Mailing Only, or Online Access Only, based on your specific filing requirements.

1099-NEC endpoints

All endpoints require a Bearer token obtained through the OAuth 2.0 authentication flow. Include this token in the Authorization header of every request. Learn more about OAuth 2.0.

• Create - Create one or more 1099-NEC records in a single submission. Federal e-file, state filing, and recipient distribution can all be requested in the same call.
• Update - Modify an existing 1099-NEC submission before it has been transmitted to the IRS.
• ValidateForm - Validate 1099-NEC field-level specifications against the IRS business rules before creating the form.
• Get - Retrieve payer, recipient, and form data for a specific 1099-NEC submission by SubmissionId.

1099 utility endpoints

The following endpoints are shared across all 1099 form types.

• List - List all 1099-NEC records for a submission or payer.
• Status - Use this endpoint to retrieve the status of the Forms 1099-NEC submitted to the IRS and/or states.
• Transmit - Transmit the created return to the IRS and State.
• StatusLog - Retrieve the status change history of the transmitted return.
• RequestDraftPdfUrl - Returns a draft PDF URL for review. These forms are not for filing and will have a watermark "For Review only" on them.
• RequestPdfURLs - Retrieve final PDF URLs for one or more recipients after transmission.
• Delete - Delete the returns created before transmitting.

As an alternative to the Status endpoint, you can configure webhooks to receive automated status updates. Learn more

Tax Year 2026 - What's new

To support the new reporting requirements introduced by the One Big Beautiful Bill Act (OBBBA), the Form 1099-NEC payload for TY 2026 introduces four new optional fields inside the NECFormData object. These fields are accepted only when SubmissionManifest.TaxYear is "2026":

• CashTips - Cash tips paid to the recipient (supports No-Tax-on-Tips reporting).
• TTOC1 - Treasury Tipped Occupation Code #1 (required when CashTips is reported).
• TTOC2 - Treasury Tipped Occupation Code #2 (optional secondary code).
• OvertimeComp - Qualified overtime compensation paid to the recipient (supports No-Tax-on-Overtime reporting).

If you send the TY 2026 fields (CashTips, TTOC1, TTOC2, OvertimeComp) with TaxYear 2025 or 2024, they will be ignored by the API. Refer to the Treasury Tipped Occupation Codes dictionary for the list of valid TTOC values.