Once your PRO trial is over you can continue using Landlord Studio GO completely free.
By continuing you agree to our Terms & Conditions.
Please visit our United Kingdom site for a better experience
ContinueThere are several 1099 requirements for landlords, for example, if they hire an independent contractor and pay them more than $600 over the course of the year.
If you've been following 1099 reporting requirements for landlords over the past few years, you've likely experienced whiplash from the constant changes, delays, and reversals. The good news? After years of uncertainty, Congress has finally provided permanent clarity with the One Big Beautiful Bill Act, signed into law on July 4, 2025.
Here's what you need to know: The planned reduction of the 1099-K threshold to $600 has been permanently cancelled. Instead, the reporting requirement has reverted to its original levels—$20,000 in gross payments AND 200+ transactions. For most landlords, this means significantly less paperwork and fewer unexpected 1099-K forms in your mailbox.
However, landlords still have several important 1099 requirements to understand and comply with, particularly when it comes to paying independent contractors for property maintenance and repairs.
Learn more about the 1099 for rent requirements here.
Form 1099 is a category of IRS information returns used to report various types of income beyond traditional wages and salaries. There are over 20 different types of 1099 forms, each designed to report specific income sources including self-employment earnings, interest, dividends, rental payments, and non-employee compensation.
The party making payments—not the recipient—is responsible for filing the 1099 form with the IRS and providing a copy to the payee.
How landlords interact with 1099 forms:
As a recipient:If you collect rental payments through electronic payment processors like PayPal, Venmo, Stripe, or property management software like Landlord Studio, the platform will issue you a Form 1099-K if your transactions exceed both thresholds: more than $20,000 in total payments AND more than 200 transactions during the tax year.
As an issuer:When you pay independent contractors for services related to your rental business—such as plumbers, electricians, landscapers, or property managers—you must provide them with a Form 1099-NEC if total payments meet the reporting threshold:
Why 1099 forms matter:
The IRS relies on 1099 forms to monitor income sources that aren't captured on traditional W-2 forms. By cross-referencing 1099s with reported income on tax returns, the IRS verifies the accuracy of earnings reported by both businesses and individuals. Failing to file required 1099 forms—or filing them late—can result in penalties ranging from $60 to $310 per form, depending on how late they're filed.
Important reminder: Even if you don't receive a 1099 form, you are still legally required to report all income to the IRS. The 1099 is an information reporting tool, not a determination of taxable income.
Under the current rules, self-managing rental property owners will receive a Form 1099-K from their payment processor only if they accepted credit card or debit card transactions that exceed both $20,000 in total payments AND involve more than 200 transactions during the tax year. This threshold applies to the 2025 tax year and all future years.
If a landlord works with an independent contractor for repairs and maintenance, they will need to provide them with a 1099-NEC if total payments cross the threshold: $600 or more for the 2025 tax year, increasing to $2,000 or more starting in 2026.
A 1099-MISC is relevant if you receive rent payments from business tenants via cash or check, or if you need to report certain other payments such as attorney fees or distributions to business partners exceeding $600.
Important: Even if you don't receive a 1099-K or other 1099 forms, you are still legally required to report all rental income to the IRS on Schedule E (Form 1040), regardless of how you collect rent.
As a landlord, you'll interact with 1099 forms in two ways: receiving them from payment platforms and issuing them to contractors.
Here's what you need to know about each form and when it's required.
Who issues Form 1099-K (PDF): Third-party payment platforms (PayPal, Venmo, Stripe, Square, Zelle, property management software)
Who receives it: Landlords who collect rent through these platforms
Both conditions must be met. Most landlords with small-to-medium portfolios won't receive a 1099-K.
When you'll receive it: By January 31 (or the next business day if it falls on a weekend)
Who issues the Form 1099-NEC (PDF) : Landlords (you)
Who receives it: Independent contractors and service providers
When to issue it: If you pay an unincorporated individual or business for services related to your rental property
Important: The $2,000 threshold for 2026 is a significant change. Track all contractor payments carefully throughout the year to determine filing requirements.
Who issues a Form 1099 MISC (PDF) : Varies depending on the situation
Who receives it: Landlords or service providers, depending on the payment type
Threshold: Generally $600 or more ($2,000 starting in 2026 for most boxes)
Box 1 - Rents: Use this box if you pay rent for office space, equipment, or other property. For example, if you rent office space for your property management business, report those payments here.
Do NOT use Box 1 for: Payments to real estate agents or property managers (these go on Form 1099-NEC).
Box 2 - Royalties: Report royalty payments of at least $10. Not commonly used by landlords.
Box 3 - Other Income: Report prizes, awards, taxable damages, Indian gaming profits, or other taxable income not reported elsewhere. Example: $600 referral bonus paid to a tenant.
Box 4 - Federal Income Tax Withheld: Report ALL backup withholding amounts, regardless of payment total. Even if you paid someone less than $600, you must report backup withholding if the IRS issued a backup withholding order.
Important: If backup withholding is for a nonemployee contractor, use Form 1099-NEC instead.
Box 6 - Medical and Health Care Payments: Report $600 or more in medical and health care payments, typically if you provide health benefits as part of an employment arrangement.
Box 10 - Gross Proceeds Paid to an Attorney: Report $600 or more in gross proceeds paid to an attorney or law firm. This includes the total settlement or judgment amount, not just the attorney's fees.
Important distinction: If you hire an attorney to provide services to your business (like drafting leases or handling an eviction), and they're operating as an independent contractor, report their fees on Form 1099-NEC (Box 1), not Form 1099-MISC. Use Box 10 of Form 1099-MISC only when reporting gross proceeds paid in settlement or judgment cases where the attorney is acting on behalf of a client in a legal matter.
Box 14 - Reserved: As of the 2025 tax year, Box 14 is reserved for future use and should be left blank. (Previously used for excess golden parachute payments.)
Note: Payments to independent contractors for services (like repairs or maintenance) should be reported on Form 1099-NEC, not 1099-MISC.
The short answer, no. The IRS requires these forms and there’s no option to refuse or file alternatives. However, there are several exceptions to the rules as they apply to property managers and landlords.
There are a number of exceptions to having to submit forms 1099-MISC and 1099-NEC. For a full list of exceptions, visit the IRS website.
It is not required if:
For each individual or entity that you intend to file a 1099 form for, you will need the following information.
It’s always a good idea to require any vendor that you use to fill out a W-9 when you first engage them with your business. Additionally, it’s best practice to ask for an updated W-9 on an annual basis for all current contractors or vendors. This will help you ensure that you don’t end up scrambling for the information at the end of the tax year and you don’t get caught out by any changes to their business, such as a change of address.
Tip: You can file your 1099s online through the IRS File Electronic Returns Electronically (FIRE) system.
With Landlord Studio you can easily calculate how much you paid each of your contractors over the tax year. When recording expenses, assign them to a specific contractor or vendor in the system, then at the end of the year, run our supplier expense report to get a comprehensive breakdown.
Running a report with Landlord Studio takes a matter of moments, select your expense categories, properties, date range, and property owner and hit “Run Report”. We instantly generate the report to be downloaded, printed, or shared with your business partner or accountant via email.
Tax season can be daunting there are numerous forms to fill out from a Schedule E to your 1099s. Often landlords don’t know when or for whom they need to fill out a Form 1099-NEC or what to do with the Form 1099-K they receive.
As such, it's advised to consult a tax professional, certified personal accountant (CPA), or qualified financial advisor to ensure that you file an accurate tax return and to help you prepare your 1099s.
Disclaimer: The information in this article is intended to be general informational purposes, not advice. Every portfolio and situation is different, and rules regarding 1099s vary from state to state, as such, make sure you consult an accountant, attorney, tax professional, or financial advisor to ensure you are submitting correctly, as well as maximizing your returns/deductions.
Landlord Studio is an easy to use property management and accounting software designed for landlords.
Find and screen tenants, collect rent online, track income and expenses, run reports, and more - all for free.
Maximize your rental property tax deductions and file with confidence before the deadline with property management accounting software designed for you.
Hosted by: Logan Ransley, Co-founder of Landlord Studio
From finding tenants to filing taxes. Reduce vacancies and maximize your portfolio ROI with software designed for you.
Get started for free
.webp)
