W-9s and 1099s for landscaping subs (2026 rules)
The threshold changed. For payments made in 2026, you file a Form 1099-NEC for a subcontractor you paid $2,000 or more. For payments made in 2025 it was $600.
Who gets a 1099-NEC
You generally file one for each person or business you paid for services in the course of your business, if the total for the year meets the threshold. For landscapers that usually means subcontracted crews, tree climbers, equipment operators, mechanics and other independent workers.
- Usually yes: sole proprietors, partnerships, and LLCs taxed as one of those.
- Usually no: corporations (attorneys are an exception), and payments you made by credit card or through a payment app's goods-and-services option, because those belong on the processor's Form 1099-K, not your 1099-NEC.
- Not for: your W-2 employees, and pure material purchases from a supplier.
The threshold
| Payments made in | File a 1099-NEC at |
|---|---|
| 2025 (forms due early 2026) | $600 or more |
| 2026 (forms due early 2027) | $2,000 or more |
| 2027 and later | $2,000, adjusted each year for inflation |
The change came from the 2025 federal tax law and applies to payments made after December 31, 2025. Check your state too: some states set their own filing rules.
The deadline
Form 1099-NEC is due to the subcontractor and to the IRS by January 31. When that date lands on a weekend, it moves to the next business day. January 31, 2027 is a Sunday, so forms for 2026 payments are due Monday, February 1, 2027.
If you file 10 or more information returns in total for the year, you must file them electronically. The IRS has a free portal for that.
The W-9 habit
Get a signed Form W-9 before the first payment, every time. Chasing tax ID numbers in January is where late and incorrect filings come from.
If a sub will not give you a tax ID number, federal rules require backup withholding: you hold back 24 percent of what you pay them and send it to the IRS.
Keep it clean all year
- Keep a W-9 folder and a running list of every sub, their tax ID status and year-to-date payments.
- Pay subs from the business account, with an invoice for each payment.
- Get a certificate of insurance from each sub too. It matters at your workers' comp audit.
- In early January, compare the list to your books and send the forms.
Not sure whether someone is a sub or an employee? That question has its own rules. Ask your CPA before you pay them as a contractor.
Want a second set of eyes?
Free 20-minute back office check by phone, evenings or Saturday. You get a one-page fix list the same day, sorted red, yellow and green.
Sources
- IRS: Instructions for Forms 1099-MISC and 1099-NEC
- IRS: Backup withholding
- IRS: Information Returns Intake System (IRIS)
- 26 U.S.C. 6041, information at source, including the $2,000 threshold (Cornell LII)
General information, not legal, tax or insurance advice. Rules vary by state and change over time; check the current rule or ask your professional before you act.