Do I Need to File a 1099 for That? A Quick Guide for Therapists

Nov 1

It’s not tax season yet... so why are we talking about 1099s?

Because getting ahead now will save you serious stress (and last-minute scrambling) in January.

If you’ve paid any contractors, consultants, or other businesses this year—even just once—it’s worth asking:

Do I need to file a 1099 for them?

We made it easy for you to find out. Use our free 1099 Decision Tree for Therapists to quickly walk through the steps. (You can even copy it to use with your team.)

What is a 1099?

A 1099 is a tax form that reports payments you made to non-employees (like contractors or service providers). The IRS uses this info to make sure income is being reported correctly—so if you skip one, it could create issues.

The most common one for therapists? Form 1099-NEC, used to report payments to independent contractors.

How to Know If You Need to File a 1099

Here’s a simplified version of what’s in our full decision tree:

✅ Did you pay someone for business-related services this year (e.g., admin help, clinical supervision, marketing support)?
✅ Did you pay them $600 or more total during the year?
✅ Did you pay by check, bank transfer, or cash—not by credit card or PayPal?
✅ Are they not a W-2 employee of yours?

If you answered yes to all of these, you likely need to file a 1099.

You might also need to file one if you paid rent, legal fees, or medical services (yes—even if they were paid to a corporation).

What You Need to File a 1099

Filing a 1099 doesn’t have to be hard. Here’s what you’ll need:

W-9 form from each person or business you paid (get one here)
Total amount paid during the year
Their name, business name (if any), and Taxpayer Identification Number (TIN)

If you don’t already have a W-9 on file, request one now—don’t wait! This is the step that usually causes delays in January.

How to File a 1099

You’ve got options:

QuickBooks or other bookkeeping software
Online e-filing services like Tax1099.com
Your accountant or bookkeeper (we can help too!)

Whichever route you choose, just make sure it’s accurate and filed on time.

Important 1099 Deadlines

January 31, 2026 – This is the deadline for individuals/businesses you paid to receive their 1099
This means you need to process your 1099s a few days ahead of that deadline, usually January 28th if you are e-filing

Pro Tip: Make 1099s Easier Next Year

Always request a W-9 before you pay someone
Keep contractor payments tracked monthly in your bookkeeping software
Use the decision tree throughout the year—not just in December

Free Tool: 1099 Decision Tree for Therapists

Want to skip the guesswork?

Download our free 1099 Decision Tree — built specifically for therapy practice owners. It walks you step-by-step through the “Do I need to file?” decision process with simple yes/no questions.