As a 1099 contractor, no taxes were withheld from your pay. That means preparing your 2025 tax return requires organization, documentation, and understanding how 1099-NEC income is reported.
This guide explains:
What Form 1099-NEC is
When to expect it
What to do if you don’t receive one
How to properly prepare your 2025 tax return
What Is Form 1099-NEC?
Form 1099-NEC (Non-Employee Compensation) reports payments made to individuals
who are not employees.
You typically receive a 1099-NEC if:
You were paid $600 or more by a business in 2025
You were paid as a contractor or freelancer
No federal or state taxes were withheld
The payer sends:
One copy to you
One copy to the IRS
This means the IRS already knows the income exists.
Who Should Expect a 1099-NEC?
You are considered a 1099-NEC contractor if you worked in 2025 as a:
Consultant or advisor
Freelancer (marketing, tech, design, writing, etc.)
Independent sales representative
Service provider
Self-employed individual or sole proprietor
If you were paid gross amounts with no payroll deductions, your income belongs on a 1099-based return.
How to Prepare Your 2025 1099-NEC Tax Return
1. Reconcile All 2025 Income
Compare your records to each 1099-NEC
Identify missing or incorrect forms
Ensure all income is captured
1099-NECs are cross-checks, not bookkeeping systems.
2. Separate Business and Personal Finances
Ideally, you should have:
A dedicated business bank account
Clear separation of business expenses
This:
Supports deductions
Reduces audit risk
Lowers preparation costs
3. Document Your 2025 Business Expenses
Only expenses that are ordinary, necessary, and business-related are deductible.
Common deductions include:
Home office (if eligible)
Mileage or vehicle expenses
Phone and internet (business portion)
Software and subscriptions
Professional and education expenses
🧾 No documentation = no deduction.
4. Review Estimated Taxes Paid in 2025
If you made quarterly payments:
Gather IRS confirmations
Match them to your records
If you did not:
Penalties may apply
Planning still matters before filing
How Do I Report Income Without a 1099-NEC?
You report the income as self-employment income based on what you actually earned in 2025.
Acceptable records include:
Invoices you issued
Bank deposits
Payment confirmations
Contracts or engagement letters
Emails confirming payment
A 1099-NEC is a reporting document, not a requirement to report income.
How Should I Inform My Tax Preparer?
Simply saying “I didn’t get a 1099” is not enough.
You should clearly tell your tax preparer:
You earned income in 2025 without receiving a 1099-NEC
The total amount earned
How you were paid (check, ACH, Zelle, etc.)
Whether that income overlaps with other 1099-NECs
Best Practice
Provide:
A summary of total 2025 income
A breakdown of:
Income reported on 1099-NECs
Income not reported on any form
Supporting bank or invoice records
This avoids underreporting and IRS notices.
Need help with your 1099-NEC tax return?
If you earned contractor income in 2025 and want to make sure it’s reported correctly — including income without a 1099-NEC — we can help you file accurately and avoid IRS issues.
