Do You Owe Your Plumber a 1099? What Landlords Need to Know for 2026

You paid a handyman for a dozen jobs this year. Do you owe them a 1099?

For landlords, the honest answer is “it depends,” and the threshold changed this year. Here’s how it works for payments made in 2026. This is a general guide, not tax advice. Confirm your situation with a tax professional.

First question: is your rental a trade or business?

The 1099 rules apply to payments you make in the course of a trade or business. Some rental activity clearly qualifies. A single rental you own mostly as an investment may not.

There’s no bright line. Two signals push you toward “yes”:

• Schedule E asks. Part I starts with two questions: did you make payments that would require Forms 1099, and did you or will you file them? A “no” to the second after a “yes” to the first is something you don’t want to explain.
• The 20% QBI deduction. If you claim the qualified business income deduction for your rental, you’re treating it as a trade or business. Filing required 1099s is part of being consistent with that.

Many landlords with ongoing rentals simply file 1099s to be safe. Ask your preparer which side you’re on.

The 2026 threshold: $2,000, not $600

For years the number was $600. The One Big Beautiful Bill Act raised the Form 1099-NEC and 1099-MISC threshold to $2,000 for payments made after December 31, 2025. It’s set to be adjusted for inflation starting in 2027.

So:

• Payments made in 2025 (forms due in early 2026): the $600 threshold
• Payments made in 2026 (forms due in early 2027): the $2,000 threshold

Plenty of articles, templates and software still say $600. Check the date before trusting a number.

Who gets a 1099-NEC

If your rental counts as a trade or business, you generally file a 1099-NEC for someone who meets all of these:

• You paid them for services (labor), not just materials or merchandise.
• They’re not a corporation. Attorneys are an exception: legal fees are generally reportable even if the firm is incorporated.
• You paid them $2,000 or more during 2026.
• You paid by cash, check, or bank transfer such as ACH or Zelle.

Payments by credit card or through a payment app’s business payments are generally reported by the payment processor on a 1099-K, not by you.

The deadline

Form 1099-NEC is due to both the contractor and the IRS by January 31. When that falls on a weekend, as it does in 2027, the deadline moves to the next business day. You can file electronically through the IRS’s free IRIS portal.

The habit that makes this painless: collect a W-9 first

Before you pay a new contractor, ask for a Form W-9. It gives you their legal name, business type (which tells you whether they’re a corporation) and taxpayer ID.

Asking after the work is done is awkward. Asking in late January is worse. If a contractor won’t provide a taxpayer ID, the IRS rules may require you to withhold from their payments (backup withholding). That’s one more reason to collect it up front.

A simple year-end routine

1. In December, total what you paid each contractor this year.
2. Drop anyone paid by credit card, anyone who’s a corporation (unless they’re an attorney), and anyone under $2,000.
3. Check that you have a W-9 for everyone left.
4. File the 1099-NECs and send copies by the January deadline.

Step 1 is the hard part if your contractor payments live in old texts and bank statements.

How Rental Manager helps

Rental Manager is an iPhone app for landlords who handle their own properties. Its Vendors screen keeps every contractor in one list, with their trade, contact details and the jobs they’ve done for you. It also keeps their W-9 and insurance information.

Each work order you assign to a vendor records what you paid. When you need totals in December, you look up the year instead of digging through bank statements. More on that in how to keep track of rental contractors.

The app keeps the records. Whether a specific payment needs a 1099 is a question for your tax professional.

Download Rental Manager: Rent & Taxes on the App Store