Who gets a 1099-NEC from a landlord: handymen, plumbers, cleaners and card payments
A landlord who runs rentals as a business generally sends a 1099-NEC to each individual or unincorporated contractor paid for services, once the year's total reaches the IRS threshold: $600 for payments made through 2025 and $2,000 for payments made after 2025. Payments by credit or debit card are reported by the card processor on Form 1099-K instead, and payments to most corporations are generally not reported. The form is due to the contractor and the IRS by January 31.
Go through your vendors one at a time
The question is not "who did I pay" but "who did I pay, for what, and how". Walk your vendor list and ask these questions for each name. The IRS instructions for Forms 1099-MISC and 1099-NEC are the source for every point below.
| Question | If yes | If no |
|---|---|---|
| Was it a payment in the course of a business, not a personal expense? | Keep going | No 1099-NEC. Personal payments are not reportable. |
| Was it for services, such as labor, repair work or cleaning? | Keep going | Payments for goods are generally a different question. Ask your tax preparer. |
| Is the vendor an individual, sole proprietor or partnership? | Keep going | Payments to a corporation (including an LLC taxed as a C or S corporation) are generally not reportable. |
| Did you pay by check, cash or bank transfer? | Keep going | Credit and debit card payments go on Form 1099-K from the processor, not on your 1099-NEC. |
| Did the year's total reach the threshold? | File Form 1099-NEC | No form needed for that vendor |
Exceptions exist (for example, attorneys' fees have their own rule), so give your tax preparer the vendor list rather than relying on this table alone.
The threshold changed
For payments made through 2025 the reporting threshold was $600. The IRS instructions say that for tax years beginning after 2025 the minimum amount for these information returns increased to $2,000, and may be adjusted for inflation starting in 2027. So the forms you prepare in early 2027 for 2026 payments use $2,000. Add up everything you paid a vendor in the calendar year, across all of your properties, before comparing.
Example a made-up owner pays a handyman $900 by check in March, $700 by check in July and $600 by bank transfer in October, all for different buildings. The year's total is $2,200, which is above $2,000, so a 1099-NEC is due by January 31 even though no single job was large. The same owner paid a cleaning company that is an S corporation $5,000, and no form is needed for it. A plumber paid $3,000 on a credit card also gets no 1099-NEC from the owner, because the card payment is reported on a 1099-K.
Prepare it before January
- Get a Form W-9 from every new vendor before the first payment. It gives you the legal name, business type and taxpayer ID.
- Record every payment against the vendor, with the date, the amount and how you paid.
- In early January, total each vendor for the calendar year and flag those at or above the threshold.
- Check the names and taxpayer IDs against the W-9s.
- File and send Form 1099-NEC to the contractor and the IRS by January 31. If a due date falls on a weekend or holiday, the next business day applies.
If a vendor will not give a W-9, tell your tax preparer, because backup withholding rules can apply. Penalties exist for filing late or with wrong information; the IRS information return penalties page lists the current amounts.
How DoorKeeping handles it
DoorKeeping keeps each paid bill against its vendor, and its 1099-NEC report totals each vendor for the year from the books, across all your properties. Ask your AI app "which vendors crossed the threshold this year?" and you get the list with the totals, ready to give to your tax preparer. DoorKeeping prepares the numbers; it does not file the forms or give tax advice. Rent and payments stay in your own bank accounts. DoorKeeping never holds your money and sends a payment only when you approve it. DoorKeeping costs $2 per unit a month, every feature included, no setup and no minimum.
Sources
- IRS, Instructions for Forms 1099-MISC and 1099-NEC, read Oct 30, 2026
- IRS, About Form 1099-NEC, Nonemployee Compensation, read Oct 30, 2026
- IRS, Information return penalties, read Oct 30, 2026
Questions
- Do I send a 1099-NEC to a contractor I paid with a credit card?
- Generally no. The IRS instructions say card payments are reported on Form 1099-K by the payment settlement entity, not on Form 1099-NEC.
- Is the 1099-NEC threshold $600 or $2,000?
- $600 for payments made through 2025 and $2,000 for payments made after 2025, per the IRS instructions. Confirm the current figure with your tax preparer.
- Do I send a 1099-NEC to an LLC?
- It depends on how the LLC is taxed. An LLC taxed as a C or S corporation is generally not reported; a single-member LLC taxed as a sole proprietor generally is. The vendor's W-9 tells you.