What’s the Best 1099 Software for a Small Business in 2026?
Last reviewed: November 2026. Prices read on each vendor’s own pricing page. Applies to tax year 2026 returns, filed in early 2027.
The honest answer is that it depends on your volume and on whether you need recipient copies mailed. For 25 Forms 1099-NEC, a realistic year costs anywhere from $0 on the IRS’s own portal to $420 on a QuickBooks subscription — with most full-service filers landing between $85 and $165.
If you pay independent contractors, you owe them and the IRS a form each year. Most small businesses need only the 1099-NEC, for contractor fees. The 1099-MISC covers rent, royalties, attorney payments and a handful of other cases. Once you file 10 or more information returns in a year — all types combined, W-2s included — e-filing stops being optional.
The short answer by situation:
- Cheapest full-service total — TaxFormHero, at $123.00 for 25 forms with state filing, mailing and TIN checks, or $98.25 where the combined federal/state programme covers the state.
- Closest rival on price — TaxBandits, about $9 behind on the same basket and marginally cheaper on direct state filing.
- E-delivery included in the base price — Avalara 1099 & W-9, formerly Track1099.
- Already paying contractors in QuickBooks — QuickBooks Contractor Payments, where 1099 e-filing comes with the subscription.
- Several users or an API — Tax1099, on its Teams or Scale plan.
- Free, if you plan ahead — the IRS IRIS portal, federal only, and you need a TCC weeks in advance.
- One annual plan with mailing built in — Yearli by Greatland.
Every figure below assumes 25 Forms 1099-NEC in one year, at each vendor’s published rates, with the add-ons most businesses actually end up buying.
In this article
- How we compared
- At a glance: seven services ranked
- The seven tools
- What 25 forms really cost
- The 2026 rules and the 2027 deadlines
- Five ways to cut the bill
- Frequently asked questions
How we compared
Most “best 1099 software” lists rank names and quote a starting price. Very few add up what you pay once state filing, mailed copies and TIN matching are in — and that total is routinely double the headline per-form rate. Several still quote the old $600 threshold, which is wrong for 2026 payments.
So we did three things. We read each vendor’s own published pricing page and converted everything to the same basket: 25 Forms 1099-NEC, federal filing, state filing, mailed recipient copies and a TIN check on every payee. We checked the tax rules against the IRS instructions for tax year 2026 and the IRS pages on IRIS, TIN matching and penalties. And we show the arithmetic for every total, so you can substitute your own volume.
| Criterion | What it means | Weight |
|---|---|---|
| Value for money | The real cost of 25 forms with add-ons, not the first price you see | 30% |
| Features and depth | W-9 collection, TIN matching, state filing, corrections, e-delivery, print and mail | 25% |
| Ease of use | Import, guided entry and ready-to-send recipient copies without IRS jargon | 20% |
| Support | Response times during the January rush, and the help centre behind them | 15% |
| Integrations | Accounting and payroll import, CSV, API | 10% |
Four services we left out, and why. Gusto files 1099s on its Contractor plan, but the price sits behind a payroll subscription we could not isolate. Tipalti collects W-9s and W-8s but is an accounts-payable platform with pricing by quote. efile4Biz (Deluxe) and eFileMyForms (Sovos) publish no 1099 pricing we could read. If a vendor does not publish a price, we cannot put it in a price comparison.
At a glance: seven services ranked
The “25 forms” column is a full year — federal filing, state filing where the service charges for it, mailed recipient copies and TIN matching. That is the bill, not the headline rate.
| # | Service | Best for | Cost for 25 forms | Starts at | Free plan |
|---|---|---|---|---|---|
| 1 | TaxFormHero | Cheapest full-service total | $123.00, or $98.25 via CF/SF | $1.99/form | No |
| 2 | TaxBandits | Close second, cheapest TIN checks | $132.50, or $108.75 via CF/SF | $2.75/form | No |
| 3 | Tax1099 | Teams and API access | $146.50 before state filing | $2.99/form | Plan only |
| 4 | Avalara 1099 & W-9 | E-delivery included | $164.00, or $118.00 with e-delivery | $3.10/form | No |
| 5 | Yearli | One annual plan, mailing included | Plan fee plus per-form | Core free, then $6.49/form | Core plan |
| 6 | QuickBooks Contractor Payments | Already on QuickBooks | $420.00/year, payments included | $25/month | No |
| 7 | IRS IRIS | Free, federal only | $0.00 | Free | Yes |
Ranking reflects fit for a small business filing a few dozen forms. At 500 or 5,000 forms the order changes, and we say where.
The seven tools
1. TaxFormHero — cheapest full-service total
From $1.99 per form · Free plan No · Best for businesses filing 5 to 500 forms that want federal, state, mailing and TIN checks without a subscription
Pricing is graduated and published in full: $1.99 per form for the first 150, $0.99 from 151 to 500, $0.60 to 1,000, and $0.45 beyond. Graduated means each band is charged at its own rate — 200 forms is 150 at $1.99 plus 50 at $0.99, not 200 at a single rate. W-2, W-2C, 1095-B and 1095-C sit on a separate band starting at $2.99.
Add-ons are priced per form: state filing $0.99, print and mail $1.69, e-delivery $0.19, and TIN matching at $0.25 in bulk or $0.49 for an instant answer. A W-9 request is $0.69 and includes the completed form and a TIN match at no extra charge. Form 8809 extensions are $2.99 flat. The full rate card is published on its 1099 Pricing page.
For 25 forms with direct state filing, mailed copies and a bulk TIN check on every payee, that comes to $123.00. Where the state takes part in the combined federal/state programme, state filing is free and the bill is $98.25. Swap mail for e-delivery and it is $85.50 — the lowest full-service total in this comparison. Federal filing on its own is $49.75.
There is no subscription, no signup fee and no peak-season surcharge: the rate in late January is the rate in June.
Where rivals close the gap: TaxBandits charges $0.95 for direct state filing against $0.99 here, and includes corrections at no cost. On a 25-form order the state-filing difference is worth a dollar.
Pros: lowest total on every basket priced here · cheapest print and mail at $1.69 · bulk TIN matching at $0.25 · no subscription and no surge pricing
Cons: no free tier · instant TIN checks cost $0.49 against the $0.25 bulk rate · fewer published third-party reviews than the older names
Verdict. The best total for a small business that wants everything in one place, and the margin widens with e-delivery instead of mail.
2. TaxBandits — the closest rival
From $2.75 per form · Free plan No · Best for filers who want the cheapest single TIN checks and free corrections
Federal e-filing is $2.75 per form for the first 10, $1.75 from 11 to 100, $1.15 to 250, $1.00 to 500 and $0.80 to 2,000. Above that it is by quote. Forwarding to states through the combined programme is free; a direct state filing is $0.95.
Add-ons are keenly priced: bulk TIN matching $0.35, mailed copies $1.85 domestic and $4.99 international, online recipient access $0.50, USPS address validation free. The first 10 W-9 requests are free, then $0.35 each. Corrections and retransmissions are free, which not every service can say.
On the same 25-form basket: $132.50 with direct state filing, or $108.75 through CF/SF. Federal alone is $53.75.
Pros: free corrections and retransmissions · free CF/SF forwarding · no surge pricing · volume bands to 2,000 forms
Cons: higher federal rate than TaxFormHero at every band under 500 · bulk TIN at $0.35 against $0.25 · mailed copies $0.16 dearer per form
Verdict. A genuinely strong service and the one to measure the others against. If free corrections matter more than $9.50 on a 25-form order, take it.
3. Tax1099 — teams and API access
From $2.99 per form · Free plan Essential, pay per form · Best for firms where several people prepare returns, or software that needs an API
Zenwork’s filer charges $2.99 per form for the first 20, $2.59 to 150, $1.99 to 250, $1.42 to 500 and $0.72 to 1,000, by quote above. The Essential plan carries no subscription. Teams at $249 a year adds multiple users and 250 TIN checks; Scale at $349 opens the API and approval workflows.
The add-ons are where it gets expensive. Real-time TIN matching is $1.00 per number — roughly double ours and nearly three times TaxBandits. Mail is $1.95, $4.99 abroad, with a seasonal surcharge on top. W-9 and W-8 requests come in bundles: $1 for one, $7 for 25, $45 for 200.
The same basket comes to $146.50, and that is before state filing, whose per-form price is not on the pricing grid.
Pros: W-8 requests for foreign payees · multi-user Teams plan · API on Scale · broad integration list
Cons: TIN matching at $1.00 · state filing price not published · support is the most common complaint in reviews
Verdict. Worth it for a firm with several preparers — the 250 TIN checks on Teams are worth more than the plan fee. For one person filing two dozen forms, it costs more for the same job.
4. Avalara 1099 & W-9 — e-delivery included
From $3.10 per form · Free plan No · Best for businesses whose contractors will accept electronic copies
The service formerly called Track1099, now owned by Avalara. Rates are $3.10 per form to 15, $2.30 to 165, $1.30 to 500 and $0.63 beyond — the highest entry rate here, and the lowest at volume.
What sets it apart is the bundle: e-delivery of recipient copies and electronic corrections are included, where most services charge for both. State filing is $1.49, TIN matching $0.45, address validation $0.07. Mail is $1.84, rising to $2.89 in late January and $3.68 internationally.
The same basket: $164.00 with mail, or $118.00 if you use the included e-delivery instead. W-9 collection sits on separate plans whose prices are not published.
Pros: e-delivery and corrections at no extra cost · $0.63 per form above 500 · well regarded by accountants
Cons: highest first-tier rate at $3.10 · mail jumps to $2.89 in peak season · W-9 plans by quote
Verdict. The economics flip if your contractors take electronic copies. If they want paper, the late-January surcharge makes it the dearest realistic option.
5. Yearli by Greatland — one annual plan
From Core free, then $6.49 per form · Free plan Core · Best for businesses that want state filing, printing and mailing in a single quoted rate
Yearli sells annual plans: Core free, Performance $129 a year, Premier $799, plus Custom by quote. The per-form rate covers federal e-file, state filing where applicable, and recipient print and mail together — no stacking add-ons.
Core is flat at $6.49 per form standard, $7.79 in peak. Performance starts at $6.99 and steps down by volume to $2.51 above 1,000. Premier starts at $2.63. Peak pricing applies in late January and early March.
For 25 forms on Core that is about $162, with mailing included — competitive once you remember most rivals’ totals also include mail. The catch is that the plan fee dominates at low volume: one form on Performance costs $135.99 all-in.
Pros: mailing and state filing inside one rate · free Core plan · unlimited TIN matching on Performance and above
Cons: peak pricing in late January and early March · per-form rates on a separate page from the plans · Premier at $799 a year
Verdict. Easy to budget and hard to compare. Price your own volume on the detailed list before choosing it.
6. QuickBooks Contractor Payments — if you already run QuickBooks
From $25 a month · Free plan No · Best for businesses already paying contractors inside QuickBooks
Intuit’s add-on: contractors complete their own W-9 online, you pay them, and at year-end QuickBooks prepares and files 1099s from the recorded payments. It is $25 a month for 20 contractors, then $2 per additional contractor, or $50 a month bundled with QuickBooks Online Simple Start. Unlimited current-year 1099 e-filing is included, as is combined-programme state filing.
For 25 contractors that is $420 a year — but the comparison is not like for like, because it also buys the tool you pay contractors with. For 1099 filing alone it costs three to four times a per-form service.
Three things to check: states outside the combined programme may not be covered, printing and mailing can cost extra, and only payments recorded in QuickBooks flow through.
Pros: no per-form fees · contractors enter their own details · payments and filing in one place
Cons: monthly fee all year round · only covers payments recorded in QuickBooks · “unlimited” applies to the current year only
Verdict. The path of least resistance if you are already there. Not a 1099 service you would buy on its own.
7. IRS IRIS — free, and federal only
From $0 · Free plan Yes · Best for a few dozen forms, filed by someone who applied for a TCC months ago
IRIS is the IRS’s own portal. Key in your forms or upload a CSV, up to 100 returns per submission, then download recipient copies yourself. Corrections go through the same portal. It costs nothing.
It is also becoming the only federal channel. FIRE is retired, and tax year 2026 returns filed in 2027 go through IRIS. A FIRE Transmitter Control Code does not carry over — you apply for an IRIS TCC separately, and you should allow several weeks. Start in January and you will miss the deadline.
The service stops at federal filing. IRIS does not mail anything, does not collect W-9s and does not check TINs. It can forward some forms through the combined programme after a trial submission, but states outside it still want a direct filing.
Pros: $0 at any volume · the IRS’s own system · corrections in the same portal
Cons: TCC needs weeks of lead time · no mailing, W-9 collection or TIN matching · federal only
Verdict. Unbeatable for ten contractors if your TCC is already in hand. Past that, the hours spent printing, stuffing envelopes and filing with states cost more than $2 a form.
What 25 forms really cost
Here is the arithmetic. Substitute your own volume and the ranking may change.
| Service | Federal | State | Recipient copies | TIN checks | Total |
|---|---|---|---|---|---|
| TaxFormHero | $49.75 | $24.75 | $42.25 | $6.25 | $123.00 |
| TaxBandits | $53.75 | $23.75 | $46.25 | $8.75 | $132.50 |
| Tax1099 | $72.75 | not published | $48.75 | $25.00 | $146.50+ |
| Avalara | $69.50 | $37.25 | $46.00 | $11.25 | $164.00 |
| IRS IRIS | $0.00 | n/a | you print them | n/a | $0.00 |
Three variations worth knowing:
- If your state takes CF/SF, state filing is free at TaxFormHero, TaxBandits and QuickBooks. The totals become $98.25 and $108.75 for the first two.
- If your contractors accept e-delivery, mailing disappears. TaxFormHero is $85.50, TaxBandits $98.75, Avalara $118.00.
- If you need TIN results instantly rather than within a day, TaxFormHero’s rate goes from $0.25 to $0.49, taking the full-service basket to $129.00.
Note what the table shows: on a 25-form order, the add-ons cost more than the filing. Federal e-filing is between a third and a half of every bill here. Any honest comparison has to price the whole basket.
The 2026 rules and the 2027 deadlines
The threshold changed. For payments made during 2026, the 1099-NEC reporting threshold is $2,000, up from $600, and it is indexed for inflation after 2026. The old figure still governs payments made before 2026 — so forms prepared in January 2027 for tax year 2025 still use $600. One January, two thresholds.
It is not a universal floor, either. Royalties remain reportable at $10, attorney gross proceeds at $600, and anything subject to backup withholding at any amount.
The deadline is February 1, 2027 for the 1099-NEC — to the recipient and to the IRS. January 31 falls on a Sunday, and a due date on a weekend moves to the next business day. Unlike most of the 1099 series, filing electronically buys no extra time on the NEC. The 1099-MISC goes to recipients by February 1, and to the IRS by March 1 on paper or March 31 electronically.
E-filing is mandatory at ten returns, counted across all information return types together. Nine 1099-NECs plus two W-2s is eleven, and eleven is over the line.
Late filing is charged per form: $60 within 30 days, $130 by August 1, $340 after that, and at least $690 for intentional disregard. The IRS copy and the recipient copy carry separate penalties, so one missed form can be charged twice. Thirty forms a month late is $1,800 — more than ten years of filing fees at any service here.
Five ways to cut the bill
- Collect W-9s at onboarding, not in January. Chasing a taxpayer ID from someone who finished the job in March is the most expensive hour of the filing season, and several services give you the first batch of requests free.
- Use e-delivery where contractors will take it. Mailed copies are the single largest line in most of these baskets — $42 to $46 on 25 forms, against $4.75 for e-delivery at $0.19.
- Check whether your state takes CF/SF before paying for direct state filing. It is free at several services and $24 to $37 if you buy it unnecessarily.
- Run TIN matching in November, not February. A mismatch found before filing costs one correction; found after, it costs a CP2100 notice and possibly backup withholding.
- File in the first half of January. Avalara and Yearli both charge peak rates in late January, and early filing leaves room to correct inside the 30-day penalty window.
Frequently asked questions
What is the cheapest way to file 1099s in 2026? The IRS IRIS portal is free, but it is federal only and you need a Transmitter Control Code weeks in advance. Among paid services, TaxFormHero is cheapest on the full basket at $123.00 for 25 forms, with TaxBandits $9.50 behind.
What is the 1099-NEC threshold for 2026? $2,000 or more paid to a non-employee for services during the 2026 calendar year. The old $600 threshold still applies to payments made before 2026. Backup withholding makes a payment reportable at any amount.
When are 2026 1099-NECs due? February 1, 2027, to both the recipient and the IRS, because January 31 is a Sunday. Electronic filing does not buy a later deadline on the 1099-NEC.
Do I have to e-file? Yes, if you file ten or more information returns in a year, counting every type together — 1099s, W-2s, 1095s and the rest.
Is FIRE still available for tax year 2026? No. FIRE is retired and tax year 2026 returns go through IRIS. A FIRE TCC does not carry over; you apply for an IRIS one separately. If you file through a service, this is handled for you.
Do I file a 1099 for a contractor I paid by credit card? No. The card network or payment platform reports those on a 1099-K. Filing your own 1099-NEC for the same money double-counts the contractor’s income.
Which service is best if I only file five forms? At five forms the differences are small in absolute terms — under $20 between the paid services. IRIS is free if you already hold a TCC. Otherwise pick on whether you need copies mailed.
Prices were read on each vendor’s published pricing page in November 2026 and are before tax. Vendors change prices, particularly before filing season — check the current figure before you buy. This article is general information, not tax advice.
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