What's the best 1099 software for a small business in 2026?
The one that fits your volume and the tools you already run. For 25 Forms 1099-NEC, expect anywhere from $0 on the IRS portal to $164 for a full-service filer that handles federal, state, mailing and TIN checks.
If you pay independent contractors, you owe them, and the IRS, a 1099 every year. Most small businesses only need the 1099-NEC, for contractor fees. The 1099-MISC covers rent, royalties, payments to attorneys and a few other cases. Once you file 10 or more information returns in a year (W-2s count), you have to e-file.
The short answer: among paid services, TaxBandits is the cheapest full package, and it forwards forms to states in the IRS combined program for free. Avalara 1099 & W-9, formerly Track1099, includes e-delivery of recipient copies. If you already pay contractors through QuickBooks, QuickBooks Contractor Payments files your 1099s at no extra cost. Tax1099 suits teams that need several users or an API, the IRS IRIS portal is free if you plan ahead, and Yearli sells annual plans with mailing included.
Every number below assumes 25 Forms 1099-NEC in one year, at each vendor's published price, with the add-ons most businesses end up paying for.
Our ranking is editorial: a sponsored spot is always labeled on its card, and no affiliate link ever changes a score.
The best 1099 software for your volume and setup
$2.75, then $1.75 per form, free combined state filing
E-delivery to contractors includedE-delivery and corrections included, from $3.10
You already pay contractors in QuickBooksUnlimited 1099 e-filing in the $25 a month plan
Several users or an APITeams $249 a year, Scale $349 with API access
Free and straight from the IRS$0, federal only, apply for a TCC early
Annual plan with mailing includedCore free, Performance $129 a year
6 tools to e-file 1099s, compared
The full ranking. The "cost for 25 forms" column adds up a year of federal filing, state filing where the tool charges for it, mailed recipient copies and TIN matching. That is the bill you actually pay, not the headline per-form price.
| Best for | Cost for 25 forms, add-ons included | Free plan | Team size | Visit | ||||
|---|---|---|---|---|---|---|---|---|
| 1 | TaxBandits | Best overall value for full-service filing | $132.50, or $108.75 through the combined state program | 4.4/5 | $2.75/form | — | 5 to 250 forms a year | Visit → |
| 2 | Avalara 1099 & W-9 | Best for e-delivery to contractors | $164, or $118 with included e-delivery instead of mail | 4.3/5 | $3.10/form | — | Businesses that want e-delivery | Visit → |
| 3 | QuickBooks Contractor Payments | Best if you already run QuickBooks | $420 a year, contractor payments included | 4.2/5 | $25/month | — | Businesses already on QuickBooks | Visit → |
| 4 | Tax1099 | Best for teams and API access | $146.50 before state filing | 4.1/5 | $2.99/form | — | Teams with several users | Visit → |
| 5 | IRS IRIS | Best free option | $0, federal filing only | 4.0/5 | Free | ✓ | A few dozen forms, filed early | Visit → |
| 6 | Yearli | Best annual plan with mailing included | Plan of $0, $129 or $799 a year, plus per-form fees | 3.9/5 | Core free, then $129/yr | — | Businesses that want one annual plan | Visit → |
Prices read on each vendor's official pricing page in 2026, before tax. None of these tools has a Labs review yet, so scores come from this ranking. Rank reflects fit for a small business, not the score alone.
Is your tool missing from this page? Email us: hello@hackceleration.com
How we compared and scored
Most "best 1099 software" lists you'll find rank names and quote a starting price. Few add up what you pay once state filing, mailing and TIN matching are in, and that total is often double the headline. Several still quote an outdated 1099-NEC threshold, and almost none mention that FIRE is going away.
We read every vendor's official pricing page, the IRS instructions for tax year 2026 and its pages on IRIS, TIN matching and penalties. Then we went through what accountants and small business owners say in forums and review sites, with extra weight on the complaints. Every price is converted to a 25-form, one-year bill.
Four tools stay off the ranking. Gusto's Contractor plan creates, files and emails 1099s automatically, but we couldn't read its price on Gusto's official page, so if you already run payroll there, check what your plan includes first. Tipalti collects W-9s and W-8s and prepares year-end returns, but it's an accounts payable platform with unpublished prices. eFile4Biz and Melio show no readable 1099 pricing.
- Ease of useFile import, guided entry and ready-to-send recipient copies without knowing IRS jargon.20%
- Value for moneyReal cost of 25 forms with state, mailing and TIN matching, not just the first price you see.25%
- Features and depthW-9 collection, TIN matching, state filing, corrections, e-delivery and print-and-mail.30%
- Customer supportResponse times during the January rush and the quality of the help center.15%
- IntegrationsImport from accounting or payroll, CSV and PDF export, an API for higher volumes.10%
No affiliate link ever changes a score or a rank.
TaxBandits
TaxBandits is an online filer built around IRS information returns. You import or type in your contractors, and it files with the IRS, handles the states and prepares recipient copies.
It's the cheapest service we compared from the very first form. Federal e-filing costs $2.75 per form up to 10, then $1.75 from 11 to 100, $1.15 from 101 to 250, $1.00 up to 500 and $0.80 up to 2,000. Forwarding to states in the Combined Federal/State Filing program (CF/SF) is free. If your state wants a direct filing, it's $0.95 per form.
Add-ons stay cheap too. TIN matching runs $0.35. Your first 10 W-9 requests are free, then $0.35 each, or $0.50 by text message. A mailed copy costs $1.85 ($4.99 abroad), online recipient access $0.50, and USPS address validation is free.
For 25 forms with direct state filing, mailing and TIN matching, you pay $132.50. If your state takes CF/SF, the bill drops to $108.75. Federal filing alone is $53.75, so the add-ons cost more than the filing itself.
The catch is the thin review base. Users praise ease of use and value, but there aren't many published reviews yet. Among accountants, though, TaxBandits keeps coming up next to Track1099 as the service they use for clients.
Tip: send W-9 requests from TaxBandits the day a contractor signs on. The first ten are free, and you skip the January chase for tax IDs.
- Free combined federal/state filing
- First 10 W-9 requests free
- TIN matching at $0.35
- ✓Lowest per-form price in our ranking
- ✓Free USPS address validation
- ✓Volume tiers up to 2,000 forms
- ✗Few published user reviews
- ✗Direct state filing billed at $0.95
- ✗International mail at $4.99
The best pick for a small business that wants everything in one place without overpaying. Just check whether your state takes CF/SF or wants a direct filing.
Avalara 1099 & W-9
Avalara 1099 & W-9 is the new name for Track1099, bought by Avalara, the US sales tax company. The idea hasn't changed: upload your payments, and it files with the IRS and the states and sends copies to your contractors.
What sets it apart is what's included: e-delivery of recipient copies, electronic corrections after filing, and PDF and CSV exports. Elsewhere, online recipient access is a paid extra.
Its first tier is the priciest we compared: $3.10 per form up to 15, then $2.30 from 16 to 165, $1.30 up to 500 and $0.63 beyond. State filing costs $1.49 per form, TIN matching $0.45, address validation $0.07. Mail is $1.84 per copy, but jumps to $2.89 in late January, when everyone files, and $3.68 for international addresses.
For 25 forms with state filing, mailing and TIN matching, you pay $164. Swap mail for the included e-delivery and you're at $118.
W-9 collection has its own plans: a free start, then Individual (25 forms), Professional (250) and Enterprise (2,000, with TIN matching included). Those plan prices aren't listed, and neither is the annual subscription offered from 100 forms: you'll need a quote. Under its old name, it's still one of the services accountants mention most, and some users say they switched to it for faster support.
Tip: file before the last week of January. Mail costs $1.05 more per copy then, and the included e-delivery sidesteps the issue.
- Recipient e-delivery included
- Electronic corrections included
- W-9 collection up to 2,000 forms
- ✓E-delivery and corrections at no extra cost
- ✓Tiers down to $0.63 per form
- ✓Support rated responsive by several users
- ✗First tier at $3.10, the highest
- ✗Mail at $2.89 in late January
- ✗W-9 plans and subscription by quote
The right pick if your contractors accept electronic copies: the base price is higher, but the total drops as soon as you skip the mail.
QuickBooks Contractor Payments
QuickBooks Contractor Payments is Intuit's add-on for paying contractors from QuickBooks. Contractors fill out their own W-9 online, you pay them, and at year-end QuickBooks prepares and files 1099s from the recorded payments.
It's a subscription: $25 a month for 20 contractors, then $2 per extra contractor, often with 50% off the first three months. Bundled with QuickBooks Online Simple Start, it's $50 a month. Unlimited 1099 e-filing for the current year is included, and so is filing with states in the IRS combined program.
For 25 contractors, that's $420 a year at full price. That figure isn't directly comparable to per-form services, because it also covers the tool you pay contractors with. If you pay them some other way, the subscription makes no sense for 1099s alone.
Three things to check before you count on "unlimited". States outside the combined program may not be covered. Printing and mailing copies can cost extra. And only payments recorded in QuickBooks flow through. In Intuit's own community, a customer on a different QuickBooks offer describes a $250 charge for 17 forms when they believed filing was unlimited, with no clear answer from support.
Tip: "unlimited" applies to the current year. If you plan to leave QuickBooks, keep the subscription until last year's 1099s are filed, then look at the best QuickBooks alternatives.
- Unlimited 1099s in the subscription
- Contractors complete their W-9 online
- Payments and filing in one place
- ✓No per-form fees
- ✓Combined-program states included
- ✓Contractors enter their own details
- ✗Monthly fee, even off-season
- ✗Mailing and some states cost extra
- ✗Covers only payments recorded in QuickBooks
The easiest path for a business already paying contractors in QuickBooks. For 1099s alone, a per-form service costs three to four times less.
Tax1099
Tax1099 is Zenwork's information return filer. It handles 1099s, W-9 and W-8 requests, and also powers filing inside other software, such as Tipalti.
Federal e-filing costs $2.99 per form up to 20, then $2.59 from 21 to 150, $1.99 up to 250, $1.42 up to 500 and $0.72 up to 1,000. Above that, it's by quote. The Essential plan is free: you only pay per form. Teams, at $249 a year, adds multiple users and 250 TIN checks. Scale, at $349 a year, opens the API and approval workflows.
Add-ons cost more than elsewhere. Real-time TIN matching is $1.00 per number, almost three times TaxBandits. Mail is $1.95 ($4.99 abroad), plus $1 late in the season. W-9 or W-8 requests come in bundles: $1 for one, $7 for 25, $45 for 200.
For 25 forms with mailing and TIN matching, you pay $146.50, before state filing, whose per-form price isn't shown on the pricing grid.
Reviews are mixed. Automatic import and simplicity come up in the praise. The interface and customer service come up in the complaints, with users describing a difficult support experience.
Tip: if several people prepare returns, Teams pays for itself fast. Its 250 TIN checks are worth $250 at the single price, more than the plan itself.
- Multi-user Teams plan
- API on the Scale plan
- W-8 requests for foreign payees
- ✓Essential plan with no subscription
- ✓Tiers up to 1,000 forms
- ✓W-9 and W-8 requests sold in bundles
- ✗TIN matching at $1.00
- ✗State filing price not listed
- ✗Support criticized in reviews
A solid tool for teams and mid-size volumes, especially on Teams. For a handful of forms on your own, it costs more than TaxBandits for the same service.
IRS IRIS
IRIS (Information Returns Intake System) is the IRS system for information returns. Its web portal is free: key in your 1099s or upload a CSV file, up to 100 returns per submission, then download the copies for your contractors. Corrections go through the same portal.
IRIS is becoming the IRS's only e-file channel. The old FIRE system is retired at the end of 2026, and tax year 2026 returns, filed in 2027, all go through IRIS. Paid software connects through a separate channel; you use the portal.
The price can't be beaten, but the service stops at federal filing. IRIS doesn't mail anything, doesn't collect W-9s and doesn't check TINs. It can forward some forms to states in the combined program, after a trial submission, but some states still require a direct filing.
Above all, you need an IRIS Transmitter Control Code (TCC) before your first filing. An old FIRE TCC won't work. You apply online, and you should allow several weeks: start in January and you may miss the deadline. Foreign filers go through a dedicated registration.
Some accountants are starting to try it for a few clients while keeping their paid service. That's the right instinct: IRIS works well for ten contractors, less so for a hundred spread across several states.
Tip: apply for your TCC in the fall, even if you plan to use a paid service. It gives you a free fallback if your tool stumbles in peak season.
- Free and official
- CSV upload of up to 100 returns
- Corrections in the same portal
- ✓$0 at any volume
- ✓The IRS's only channel for tax year 2026
- ✓Downloadable recipient copies
- ✗TCC needs weeks of lead time
- ✗No mailing, W-9 collection or TIN matching
- ✗State filing limited to the combined program
Perfect for a handful of contractors if you get your TCC in time. Beyond that, the hours spent printing, mailing and filing with states cost more than $2 a form.
Yearli
Yearli is the online service from Greatland, a US company specializing in tax forms. It runs on annual plans: Core is free, Performance is $129 a year, Premier $799 a year, and Custom is by quote.
Its pricing covers federal e-filing, state filing where required, and printing and mailing recipient copies. That's reassuring if you don't want to add up options one by one.
On the other hand, per-form prices sit on a separate detailed page, and Yearli charges peak pricing in late January and early March, when filings pile up. The plan price alone doesn't tell you what you'll pay.
We couldn't price 25 forms as precisely as for the other tools. That's why it ranks last: the service is complete, but you only know your bill once you open the detailed price list.
Tip: file before peak periods. Standard pricing applies outside late January and early March, and your 1099-NEC is due by January 31 anyway.
- Free Core plan
- State, print and mail included
- Custom plan for high volumes
- ✓Mailing included in pricing
- ✓Three plans with public prices
- ✓Custom option beyond that
- ✗Per-form prices on a separate page
- ✗Peak pricing in late January and early March
- ✗Premier plan at $799 a year
A no-surprise option on scope, with mailing and state filing included. Open the detailed price list and compare the total with TaxBandits before you sign up.
What your 1099s really cost, and the rules to know
Three questions matter more than any feature list: what you really pay, who you have to report, and by when. Since tax year 2023, e-filing is mandatory once you file 10 information returns in a year, all types combined, W-2s included. Run payroll too and you'll hit that line sooner than you think. For a broader look at federal and state filings, see our best business tax software ranking.
The real cost of 25 forms
Who to report, and from what amount
Deadlines and penalties
- Count every information return for the year, W-2s included: at 10 or more, paper is no longer allowed.
- Collect each contractor's W-9 before the first payment, and keep it for 4 years.
- Check TINs before you file: without a valid one, you must withhold 24% of payments.
- Find out whether your state takes CF/SF or wants a direct filing.
- Apply for your IRIS TCC weeks before January 31, even if you used FIRE before.
- Add up mailing, state and TIN matching before you compare two per-form prices.
Six tips for a 1099 season with no nasty surprises
Trouble rarely shows up on filing day. It shows up the week before, when a TIN is missing, a state rejects the file or mailing suddenly costs more. Here's what keeps coming up from accountants and small business owners.
Get the W-9 at onboarding, not in January
MethodThe W-9 is where a contractor gives you their name and taxpayer identification number (TIN). It's step one with any contractor, and you keep it for 4 years. With no TIN, or a wrong one, you have to withhold 24% of their payments as backup withholding and report it on Form 945. Ask for it before the first invoice: nobody answers fast in January.
- Keep for
- 4 years
Check TINs before you file
TrapThe IRS runs a free TIN Matching service, reserved for payers who file information returns. You need an IRS online account and prior authorization. Filing software does it in one click: $0.35 at TaxBandits, $0.45 at Avalara, $1.00 at Tax1099. A rejected number is far easier to fix in December than after you file.
- Cost per TIN
- $0.35 to $1.00
Apply for your IRIS TCC in the fall
CalendarFIRE is retired at the end of 2026. For tax year 2026, everything goes through IRIS, and an old FIRE TCC is useless: you need a new IRIS TCC. Allow several weeks between applying and getting access. A paid service doesn't need yours, but having one keeps a free way out open.
- Lead time
- Several weeks
Choose e-delivery over late-January mail
BudgetMail is the add-on that inflates the bill most, and it costs more when everyone files. At Avalara, a mailed copy goes from $1.84 to $2.89 in late January; at Tax1099, it costs $1 more late in the season. E-delivery is included at Avalara, and online access is $0.50 at TaxBandits. Ask contractors whether they accept electronic copies when you collect the W-9.
- Gap per copy
- Up to $1.05
Check your state before picking a tool
TrapMany states receive 1099s through the combined federal/state program: TaxBandits and QuickBooks Contractor Payments forward them at no extra cost. Other states require a direct filing, at $0.95 per form at TaxBandits and $1.49 at Avalara. Check the rule in every state where you have contractors: with several states, the gap between tools grows fast.
- CF/SF
- Free at TaxBandits
Paying a contractor abroad? Check before you issue a 1099
CautionThe 1099 targets contractors who are US taxpayers, the ones who hand you a W-9. As a general rule, a foreign contractor working outside the US fills out a W-8BEN instead and doesn't get a 1099. Work done on US soil follows different rules. If you pay people abroad, have a tax professional confirm your setup before the season starts.
- Form
- W-8BEN instead of W-9
Your 1099s are sorted, now what
1099s are one piece of your back office. Payroll, bookkeeping and supplier bills matter just as much. These pages cover the neighboring topics.
Accounting, migration and pricing compared.
You also have employees to payThe best small business payroll softwareW-2s, taxes and price per employee.
Your books need to keep up with growthThe best accounting software for SMBsReconciliation, multi-entity and pricing.
You handle your own business taxesThe best business tax softwareFederal and state returns, compared.
You sell across states or countriesThe best international sales tax softwareSales tax, VAT and nexus thresholds.
Contractor and team expenses pile upThe best expense management software for SMBsCards, receipts and approvals.
1099 software · FAQ
Can I file 1099s for free with the IRS?
Yes, through the IRS IRIS portal. You can key in forms or upload a CSV file, up to 100 returns per submission, and download recipient copies. You first need an IRIS TCC, which takes several weeks to get. Free stops at federal filing: mailing, W-9 collection and TIN checks are on you.What is the 1099-NEC threshold for 2026?
$2,000. For tax year 2026, you file a 1099-NEC for each contractor you paid $2,000 or more during the year. Many guides still quote the old figure, so double-check the source. Attorney gross proceeds on the 1099-MISC still start at $600, and royalties at $10.Is the IRS FIRE system still available?
Not for the next season. FIRE is retired at the end of 2026, and tax year 2026 returns, due in 2027, go through IRIS only. If you filed through FIRE yourself, your FIRE TCC won't carry over: apply for an IRIS TCC. If you use a paid service, it handles the switch.Do I need to file 1099s with my state?
Often, yes. States in the Combined Federal/State Filing program receive e-filed 1099-NEC and 1099-MISC forms at no cost when the federal filing goes through it. Other states require a direct filing. TaxBandits charges $0.95 per form for that, Avalara $1.49, and QuickBooks Contractor Payments includes combined-program states.Do I need to send a 1099 to a corporation or an LLC?
Payments to corporations are generally exempt from the 1099. The most common exception is attorneys, whose fees are reportable even when they practice as a corporation. Ask every contractor for a W-9 regardless of entity type: it tells you whether a 1099 is needed and protects you from 24% backup withholding.What's the difference between a 1099-NEC and a 1099-MISC?
The 1099-NEC reports fees paid to independent contractors. The 1099-MISC covers the rest: rent, royalties, medical payments and gross proceeds paid to an attorney. Deadlines differ too: NEC is due January 31, MISC March 31 if e-filed. Golden parachute payments now go in box 3 of the 1099-NEC.Can my payroll or accounting software file my 1099s?
Often, if you pay contractors through it. QuickBooks Contractor Payments e-files current-year 1099s at no extra cost from payments recorded in QuickBooks. Gusto's Contractor plan also creates, files and emails 1099s automatically. Check two things before relying on it: states outside the combined program and mailing, which often cost extra.What's the cheapest way to e-file 1099s?
For a handful of contractors, the free IRIS portal, if you hand out copies yourself. Once you want mailing, state filing and TIN checks, TaxBandits is cheapest: $108.75 for 25 forms through CF/SF. At 200 forms, its tiers come to about $300 of federal filing, versus about $437 at Avalara and $496 at Tax1099.
