TC business taxes · Form 1099-NECForm 1099-NEC for transaction coordinators: who sends it, when, and the $2,000 rule
An independent transaction coordinator is paid as a nonemployee. A payer – an agent, team or brokerage – that pays the TC $2,000 or more during the year for services in its trade or business reports it in box 1a of Form 1099-NEC; for tax years beginning after 2025 the threshold rose from $600 to $2,000 and may be adjusted for inflation from 2027. The form goes to the TC and to the IRS by January 31 (the next business day if that is a weekend or holiday). Two common exceptions: payments made by credit card, payment card or a third-party network are reported on Form 1099-K by the payment company, not on a 1099-NEC; and payments to a corporation – including an LLC taxed as a C or S corporation – generally are not reported. None of this changes what the TC owes: the IRS instructions say payments that are not reported may still be taxable to the recipient.
The rules (Instructions for Forms 1099-MISC and 1099-NEC)
$2,000
Nonemployee compensation of $2,000 or more in a year (tax years after 2025; $600 before).
Box 1a
Fees, commissions and other pay for services by someone who is not an employee – including fees paid by one professional to another.
January 31
File with the IRS and give the TC their copy by January 31; a weekend or holiday moves it to the next business day.
Cards and apps
Credit card, payment card and third-party network payments go on Form 1099-K, not 1099-NEC.
Corporations
Generally not reported, including an LLC treated as a C or S corporation.
What a TC should do
- Give every payer a Form W-9 with the right name and taxpayer ID before the first invoice.
- Keep your own income record per payer – compare it with each 1099 in February.
- Report all business income on Schedule C, with or without a 1099.
- If you pay subcontractors (another TC, an assistant), you may be the one who has to file.
Common mix-ups
- Expecting a 1099-NEC for money received through a card processor or payment app – look for a 1099-K instead.
- Two forms for the same income: one from the brokerage and one from the agent – ask who paid you.
- Old $600 threshold in a payer's process – 2026 payments use $2,000.
Questions TCs ask
Will I get a 1099-NEC if an agent paid me less than $2,000?
For 2026 payments, the payer reports nonemployee compensation of $2,000 or more; below that no 1099-NEC is required, but the income is still taxable.
When should I receive my 1099-NEC?
The payer must furnish it and file it with the IRS by January 31, or the next business day if that date is a weekend or legal holiday.
I was paid through a payment app – why no 1099-NEC?
Payments by card or through a third-party network are reported on Form 1099-K by the payment settlement entity, not on Form 1099-NEC.
Related guides
ClosingCode's Money tab records every TC fee by payer, so the 1099s you receive in January can be checked against your own numbers in a minute.
Start free trialSource: IRS Instructions for Forms 1099-MISC and 1099-NEC, revision for 2026 information returns (irs.gov/instructions/i1099mec, read October 25, 2026).
General information, not tax advice. ClosingCode is software; it is not a tax preparer or CPA. Your own situation and state taxes can change the answer. This guide is not a substitute for the advice or services of an attorney.