File 1099-NEC and 1099-MISC forms in Mercury

Mercury 1099 Filing lets you prepare, e-file, and distribute IRS Form 1099 NEC and 1099 MISC – all from your Mercury dashboard. It pulls all eligible payments you’ve already made through Mercury, collects missing W-9s from recipients, helps you file with the IRS and states, and securely delivers recipient copies.

This streamlined workflow helps you file with the IRS and states, saves time by eliminating spreadsheets and manual uploads, and keeps everything in one place by letting you track eligibility, filings, and tax documents all from one place.

Who is required to file a 1099-NEC and/or 1099-MISC?

1099 reporting is required by law: Every business “engaged in a trade or business” with U.S. persons* is legally required to file a 1099-NEC or 1099-MISC if it makes certain types of payments — typically $600 or more for services and/or $10 or more in royalties in a tax year — to non-employees or specific entities. The most common forms are 1099-NEC, used for payments to independent contractors, and 1099-MISC, used for other reportable payments such as rent or royalties. The IRS can charge penalties up to $660 for each form a business fails to correctly file on time. Additionally, interest will accrue on your outstanding penalty balance until you pay off the amount. 

*For federal tax purposes, you are considered a U.S. person if you are:

• An individual who is a U.S. citizen or U.S. resident alien;
• A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States; An estate (other than a foreign estate); or A domestic trust

The following table provides the 2025 IRS filing deadlines for the 1099-NEC and 1099-MISC. While the IRS e-file deadline for the 1099-MISC is March 31, it must still be delivered to recipients by February 2. For that reason, we still surface Feb 2 as the filing deadline for both the NEC and MISC within the product experience.

Navigating the Taxes page

1. Navigate to the Taxes page, which is located on the left-hand menu under the Payments section
2. Here, you will find two tabs, the 1099 Filing tab and the Tax Documents tab.
   • The 1099 Filing tab is where you manage the 1099 filing process. Click Get Started to add 1099-eligible recipients, send W-9 requests, review payment data, and e-file forms with the IRS and state agencies.
   • The Tax Documents tab is your document hub. It includes all W-9 and W-8BEN forms submitted by recipients, any 1099-NEC and 1099-MISC forms you’ve filed through Mercury, and any 1099-INT forms Mercury has issued for your account.
      

Getting started with 1099 Filing

1. Navigate to Payments > Taxes
2. Make sure to specify the Tax Year dropdown as the year you want to file for
3. Click Get Started from the 1099 Filing page
4. Add 1099 Recipients who meet the payment, location, and tax entity criteria provided by the IRS. Mercury will show a list of all your Recipients and Counterparties to choose from. When possible, we’ll suggest recipients who appear to meet the IRS criteria for 1099 Filing.
5. Select a 1099 Form type for each recipient. If someone received both NEC and MISC payments, you can choose more than one option. Not sure which form to choose? Click here to learn more.
6. Request W9s or upload one manually for recipients who are missing a W9 
7. Once you complete these steps, you will land on the Filing Summary page

Handling duplicates

• On the Add 1099 Recipients step, if you notice duplicate profiles for the same entity, select them and click the profile icon in the bottom menu to combine them into one 1099 filing. This only affects 1099 Filing — the profiles remain separate elsewhere in Mercury. To permanently merge recipients, go to the Recipients page.
• To unlink recipients in a combined filing, select the profile, click the profile icon in the bottom menu, then click the unlink icon next to the recipient you want to separate.

Granting permissions for 1099 Filing

• Admins automatically get access to 1099 Filing.
• When managing roles and permissions, assign the Accountant custom role or a Custom User role with the Accounting permission to let a team member manage and file 1099s for the company.
• Custom Users with the Accounting permission will only see transactions from the bank accounts they have access to, so be sure to grant access to any accounts with 1099 reportable transactions.
   

Completing your filing summary tasklist

Your Filing Summary dashboard shows all 1099 recipients and a checklist of tasks needed to complete filing. Missing or invalid information will appear as a status in the table and as a task at the top of the page. Hover over any error to see what it means and how to resolve it. Nothing left to do? Kick back and relax until Filing season (Jan 1 - Feb 2).

Filing 1099s

Once January 1st comes around, you will be able to File for each of your 1099 Recipients.  

1. Navigate to Payments > Taxes
2. If you haven’t enabled 1099 Filing yet, click Start Filing from the primary banner
3. If you already have recipients ready to file, click Start Filing from the tasks section

Once you file your 1099s, you can navigate back to the Taxes page and view the Federal and State Filing statuses as well as the Recipient Delivery status.

Delivering 1099s to recipients

Once you file your 1099s, Mercury will generate and deliver 1099 forms to each recipient. This typically takes up to 1 business day.

If you file before 1/29

• For recipients without an email address on file, Mercury will print and mail their 1099s
• For recipients with an email address on file, Mercury will email them that their 1099 is ready to download and ask for e-consent to view it online. If they decline consent or do not respond by 1/30, Mercury will print and mail their 1099 so it arrives before the February 2 deadline

If you file on 1/29 or later

• For recipients without an email address on file, Mercury will print and mail their 1099s
• For recipients with an email address on file, Mercury will print and mail their 1099s and also email them that their 1099 is ready to download and ask for e-consent to view it online

Submitting a 1099 correction

You can void or file a 1099 Correction at no additional cost. To do this, follow these steps:

1. Navigate to Payments > Taxes
2. Void a Filing
   • Navigate to the Recipient you want to void and click Void Filing
   • Make the necessary changes by selecting which form to void and click Void
   • Your forms are now voided. If you wish to file for this recipient in the future, you can do so by filing a Correction
3. Correct a Filing
   • Navigate to the Recipient you want to correct and click Correct Filing
   • Make the necessary changes and click Submit Correction
   • Once you file your Correction, you can navigate back to the Taxes page and view the Federal and State Filing statuses as well as the Recipient Delivery status for the correction

Note: You will only see the option to Correct Filing after the original 1099 has been submitted and marked as "Accepted" by the IRS. This can take up to 4 business days.
 

FAQs

Refer to 1099 Filing FAQs found here. 
 

For specific guidance on your tax filing obligations, please consult with a qualified tax professional. Mercury does not provide tax advice. Tax regulations can be complex and vary based on individual circumstances, so it's important to seek personalized advice from an expert who can assess your unique situation.