--- title: "Get Ready for 1099 Filing: What Bridal Shops Need to Know Before 2026" description: Explore the hidden costs, benefits, and key steps to make your bridal store's growth successful and profitable. image: https://blog.bridal.vision/hubfs/Portrait%20of%20Seamstress%20in%20a%20Wedding%20Salon%20Sews%20a%20Wedding%20Dress%20and%20Veil%2c%20%20Handmade%2c%20Boutique.%20Small%20Local%20Business%2c%20Self-Employment.%20-%20Edited%20-%20Edited.jpg --- [![BridalVision](https://blog.bridal.vision/hs-fs/hubfs/Logos/BV-PinkLogo(noCV)-1.png?width=490&height=188&name=BV-PinkLogo(noCV)-1.png "BridalVision")](https://bridal.vision) - [Our Approach](https://www.bridal.vision/approach) - [Accounting](https://www.bridal.vision/accounting) - [Advisory](https://www.bridal.vision/bridalvision-financial-advisory-programs-overview) - Education - [Bridal Success Blog](https://blog.bridal.vision) - [Bridal Business Masterclass](https://resource.bridal.vision/bridal-business-masterclass) - [Case Study](https://resource.bridal.vision/case-study-blush-bridal-boutique) - [Text us (401) 227-0889](tel:4012270889) - [LOGIN](https://app.bridal.vision) # Get Ready for 1099 Filing: What Bridal Shops Need to Know Before 2026 ![Image of Ingrid Heilke](https://blog.bridal.vision/hubfs/Headshots%20and%20Team%20Photos/Headshot%20edit%20for%20IG.png) ###### Ingrid Heilke [mailto:?subject=Check%20out%20https://blog.bridal.vision/1099-2026%20&body=Check%20out%20https://blog.bridal.vision/1099-2026&media=https://8322818.fs1.hubspotusercontent-na1.net/hubfs/8322818/Portrait%20of%20Seamstress%20in%20a%20Wedding%20Salon%20Sews%20a%20Wedding%20Dress%20and%20Veil%2c%20%20Handmade%2c%20Boutique.%20Small%20Local%20Business%2c%20Self-Employment.%20-%20Edited%20-%20Edited.jpg](mailto:?subject=Check%20out%20https://blog.bridal.vision/1099-2026%20&body=Check%20out%20https://blog.bridal.vision/1099-2026&media=https://8322818.fs1.hubspotusercontent-na1.net/hubfs/8322818/Portrait%20of%20Seamstress%20in%20a%20Wedding%20Salon%20Sews%20a%20Wedding%20Dress%20and%20Veil%2c%20%20Handmade%2c%20Boutique.%20Small%20Local%20Business%2c%20Self-Employment.%20-%20Edited%20-%20Edited.jpg) If you’re a bridal shop owner who works with independent contractors—think seamstresses, contractors working on store buildouts or repair, marketing consultants, or web designers—you need to understand 1099 filings. The good news is that there are big changes to the 1099 reporting thresholds starting in 2026, making the filings less stringent. Nevertheless, you still need to follow 1099 rules if you pay contractors by check, cash, or cash equivalent. [Download Your 1099 Tip Sheet](//javascript:postMessage({type:'HS_DISPLAY_CALL_TO_ACTION',id:196202003602});) Key Takeaways: - **Use Form 1099-NEC** to report payments of $600 or more to non-employees like seamstresses, cleaners, or freelance marketers. - The $600 threshold **increases to $2,000** starting in 2026 - Use **Form 1099-MISC** for rent payments, prizes, or legal settlements—not contractor payments. - Only file if you paid via **cash, check, ACH, or direct deposit**—not via credit card or PayPal Business. - Collect a **W-9 from every vendor** before you pay them to get the correct legal name, address, and Tax ID. - 1099s are **due to the IRS and your contractors by January 31.** ## Important Update: 1099 Thresholds Are Changing in 2026 Heads up: The IRS is changing the reporting rules for third-party payment platforms, and it will affect many small business owners starting in 2026. - For payments to non-employees (contractors, freelancers, etc.), the current $600 threshold for issuing a 1099-NEC (and similar non-wage payments on 1099-MISC) will increase to $2,000 under the new law. - The new threshold takes effect for payments made after December 31, 2025 (i.e., when filing for the 2026 tax year). - Starting in 2027, that $2,000 threshold will be adjusted annually for inflation.  This change means that you may have *fewer* contractors eligible for 1099 filing starting in 2026. Don’t let your guard down, though. It’s still important to file 1099s for any contractors that are eligible in order to stay in compliance. ## What Is Form 1099-NEC? This is the form you’ll use most often as a bridal shop owner. Use **Form 1099-NEC** (Nonemployee Compensation) if you: - Paid **$600 or more** to a contractor, stylist, seamstress, or freelance service provider - The $600 threshold increases to **$2,000** starting in 2026. - Paid them by **cash, check, Zelle, Venmo (personal), or ACH** - They’re **not taxed as a corporation** (e.g., they’re a sole proprietor or LLC taxed as a sole prop) You do **not** file a 1099-NEC if you paid via: - **Credit card** - **PayPal Business** - **Third-party platforms like Square or Stripe** Those platforms are responsible for sending out a **1099-K** if applicable. ## What Are Forms 1099-MISC? The 1099-MISC (Miscellaneous Income) is still in use, but it’s for **different types of payments**, such as: - **Rent** paid to a landlord (Box 1) - **Legal settlements** (Box 3) - **Prize or award money** (Box 3) - **Medical or health care payments** If you rent your bridal shop space from a private landlord, you probably owe them a 1099-MISC. ## When Are 1099s Due? - Whether you're filing a 1099-NEC or 1099-MISC: - **Send the form to the contractor/vendor by January 31** - **File with the IRS by January 31** (electronically or via mail) - These forms need to be prepared after your books are closed and before the deadline. Late filings can trigger **penalties of $60 to $660 per form**, so don’t push this to the last minute. ## Pro Tips for Bridal Shops - **Collect a W-9 before you pay anyone.** This ensures you have the vendor’s legal name, entity type, and Tax ID. - **Track how you’re paying.** You only need to issue 1099s if you pay outside of credit card or third-party processors. - **Double-check entity types.** You don’t need to file for vendors who are S-Corps or C-Corps—unless they’re attorneys (yes, even incorporated law firms need a 1099-MISC for legal payments). - **Properly reconcile all of your bank accounts** in an accounting platform such as QuickBooks Online to ensure accuracy *before* pulling amounts to report on 1099 forms. ## Final Thoughts If you’re hiring non-employees to help run your bridal shop, **1099s are non-negotiable**. The IRS is cracking down on unreported contractor payments, and you don’t want to be on the wrong side of that audit. By understanding the difference between **1099-NEC and 1099-MISC**, collecting W-9s upfront, and filing on time, you’ll avoid penalties and build a more professional, compliant business. Need help sorting out your contractor payments or other accounting issues? [Let's talk!](https://calendly.com/viridian/discovery) We work with bridal shops every day. Let’s make this tax season smooth and simple. [Download Your 1099 Tip Sheet](//javascript:postMessage({type:'HS_DISPLAY_CALL_TO_ACTION',id:196202003602});) [Need Accounting Help? Let's Talk...](https://calendly.com/viridian/discovery)   --- ![Image of Ingrid Heilke](https://blog.bridal.vision/hubfs/Headshots%20and%20Team%20Photos/Headshot%20edit%20for%20IG.png) ###### Ingrid Heilke When I found the world of bridal stores, I found a community of business owners that were solely dedicated to the beauty and transformation of a moment in other women’s lives, but were sacrificing themselves to make it happen. I found loving people who would go hundreds of thousands of dollars into debt to make a moment in someone else’s life beautiful. Guiding bridal store owners to a financial future that does not ask them to sacrifice themselves, but rather, thanks them for the ways that they touch the lives of others has been deeply rewarding. [Follow me on my website](https://blog.bridal.vision/bridal.vision) [Follow me on Facebook](https://blog.bridal.vision/www.facebook.com/BridalVisionFinancial) [Follow me on LinkedIn](https://www.linkedin.com/in/iheilke/) --- ## Related Posts ### Thinking of Expanding your Bridal Shop? 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