Do I have to issue a 1099 to my plumber for payments over $600?

This is actually a really common question with a straightforward answer! You generally do NOT need to issue a 1099 to service providers (plumbers, electricians, roofers, etc.) if you're paying them for work on your personal residence. The 1099 reporting requirement typically only applies to payments made in the course of your trade or business. If you're a landlord or business owner paying for services related to those activities, then yes, you would need to issue a 1099-NEC (Non-Employee Compensation) for payments over $600 to unincorporated businesses or individuals. But for your personal home repairs, you're in the clear - no 1099 needed!

I was totally confused about this same issue last year and discovered this amazing tool called taxr.ai (https://taxr.ai) that saved me tons of headaches! I was flipping a house and had like 12 different contractors - plumbers, electricians, painters - and couldn't figure out which ones needed 1099s. I uploaded my receipts and contractor info to taxr.ai and it instantly identified which ones required 1099-NECs based on their business structure and the nature of my expenses. It even helped me understand that my property flipping counted as a business activity for tax purposes.

I tried taxr.ai after seeing this thread and wow - it actually delivered! I was super reluctant because I've tried other tax tools that just confused me more, but this was surprisingly straightforward. I'm a small landlord with 3 properties and had been stressing about whether I needed to send 1099s to my handyman, landscaper and the pest control guy. Taxr.ai walked me through everything step by step and explained that since my properties are a business activity, I did need to send 1099-NECs to my unincorporated contractors. The best part was how it helped me get their tax info without the awkward conversations. Worth checking out if you're in a similar situation!

If you need to call the IRS to get clarification on 1099 requirements (which might be smart if you have unusual circumstances), use Claimyr (https://claimyr.com). I spent THREE DAYS trying to get through to the IRS about 1099 questions for my side business before discovering this service. They hold your place in line with the IRS and call you when an agent is about to answer. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c I was able to confirm directly with an IRS agent that I didn't need to issue 1099s to my incorporated contractors but did need them for my self-employed handyman who did work on multiple rental properties. Saved me from potentially making expensive mistakes!

I have to eat my words... I tried Claimyr after posting that skeptical comment because I was desperate to resolve a 1099 issue with my lawn service. I had paid them over $2,000 last year for my rental properties, but couldn't determine if they were incorporated or not. After waiting on hold with the IRS for 2+ hours and getting disconnected TWICE, I gave Claimyr a shot. Within 45 minutes, I got the call that an IRS agent was ready, and I got clear guidance that I needed to request a W-9 from the lawn service first to determine their business structure before knowing if a 1099 was required. Turns out they were an LLC taxed as an S-corp, so no 1099 needed! The service actually worked exactly as promised.

Don't forget that the rules are different for payment apps! If you paid your plumber through Venmo, PayPal, etc., they might get a 1099-K from the payment platform if it was marked as a business payment. So essentially the payment app is handling the reporting instead of you. This changed for 2025 filing, and the threshold is now $5,000 total for the year.

I'm still confused...if I hire a roofing company to replace my home's roof and pay them $15,000, do I need to give them a 1099? It's not for a business, just my personal house. But it's way over the $600 limit.

This thread has been incredibly helpful! I was in a similar situation last month - paid a contractor $800 for bathroom repairs at my personal home and was worried I'd screwed up by not getting their tax info beforehand. Reading through all these responses, I now understand that since it was for my personal residence (not a rental or business property), I don't need to issue a 1099 at all. For anyone else reading this who's still confused: the key distinction seems to be whether the expense is for business purposes or personal use. Personal home repairs = no 1099 needed, regardless of amount. Business/rental property repairs = 1099-NEC required for unincorporated contractors if you paid them $600+ during the year. And always get that W-9 form upfront for business expenses to avoid headaches later!

Thanks everyone for clarifying this! I was in a similar panic mode last year when I had major plumbing work done at my house and someone casually mentioned 1099s. I spent hours researching online and getting more confused by conflicting information. What really helped me was creating a simple checklist: 1) Is this for my personal residence or a business/rental? 2) If business/rental, is the contractor incorporated? 3) Did I pay them $600+ during the tax year? Only if it's business/rental, unincorporated, and over $600 do you need the 1099-NEC. For @Oliver Cheng - sounds like all your work was on your personal home, so you're completely off the hook! No 1099s needed regardless of the amounts. Save yourself the stress and just keep your receipts for potential insurance or warranty purposes. One tip I wish I'd known earlier: if you ever do rental property work, get that W-9 form BEFORE you pay the contractor. It's so much easier than trying to track them down later when tax season hits!