For your business, the answer is no. Your business must file 1099 forms to report non-employee compensations. These services can include:
- Paying independent contractors $600 or more (Form 1099-NEC)
- Reporting awards, prizes, and rents (Form 1099-MISC)
Do not get confused with what software vendors must report. Vendors that offer software with an established time limitation — in other words, renewal requirements — must treat your payment as rental income. They report rental income from your business in Box 1 of Form 1099-MISC, but you do not.
People Also Ask
- What is Form 1099-MISC? – Using a 1099-MISC form is less commonplace for certain businesses now that specific contractor income is reported on Form 1099-NEC. Talk to your team, or determine yourself, which is needed to accurately reflect compensation.
- How can I prepare for 1099 form changes? – Getting tax software that generates forms and regularly updates its federal and state tax tables is one way to stay compliant.
We generate 1099s and other related forms with our W-2/1099 Forms Filer for your other needs. Download our free 1099-etc Demo software to see which of our modules can complement your requirements along with our base program.
This article was updated on Jan. 12, 2026 to keep its information as fresh as possible. We update this article every six months, before and after tax season, to keep it current with any changes.