Feature

1099 tracking that is ready in January

Tag what you pay your contractors and LedgerMCP totals it for the year, flags everyone over $600, and marks who is missing a W-9. Refunds are netted out, unclassified payees are surfaced, and the whole thing exports for your CPA.

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Tool callrun_1099_report
{
  "year": 2026
}
7 vendors over $600. 2 missing a W-9 (Acme Design, J. Rivera). 1 unclassified payee to review.

How 1099 prep works

  1. 1

    Tag payments to your vendors

    Tag each contractor or vendor payment, or have your agent do it as it categorizes. A tag is just a name money rolls up against, so per-vendor totals build themselves through the year.

  2. 2

    Run the 1099 report

    LedgerMCP totals net payments to each vendor for the year, flags everyone over the $600 threshold, and marks who is missing a W-9. Refunds are netted out, so the reportable figure is right.

  3. 3

    Collect W-9s and export

    Attach each vendor’s W-9, fix any unclassified payees the report surfaces, and export to CSV for your CPA. Year-end 1099 prep, minus the spreadsheet.

What the report catches

Over the threshold

Every vendor at or above the $600 reporting line is flagged, so you know exactly who needs a form and who does not.

Missing W-9s

Vendors without a W-9 on file are marked, turning year-end into a short list of people to email instead of a scramble.

Unclassified payees

Payments to someone you never tagged as a vendor still show up, flagged for review, so nobody reportable is missed.

Vendors are just tags

There are no vendor portals or contact records to maintain. A vendor is a tag, a name money rolls up against, and a transaction can carry several. That keeps 1099 tracking effortless: tag as you categorize, and the totals are always current.

The same tags power project and client reporting, so the work you do for taxes doubles as insight into where your money goes the rest of the year. And 1099s are only half of tax season: your Schedule C comes from the same year of books.

The tools behind it

Run the year-end report, classify a tag as a vendor, and tag a payment. Your agent uses the same three.

run_1099_reportupdate_tagtag_transaction

Common questions

Does LedgerMCP track 1099 payments?

Yes. Tag payments to a vendor and LedgerMCP totals what you paid them across the year. The 1099 report lists every vendor, flags those at or above the $600 reporting threshold, and marks who is still missing a W-9.

How does it know who needs a 1099?

It totals net payments per vendor and applies the $600 threshold, so anyone at or above it is flagged as reportable. Refunds from a vendor reduce their total, so you are not over-reporting money that came back.

Can I store W-9s?

Yes. Each vendor can hold a W-9 attachment, the same way receipts attach to transactions. The report flags vendors whose W-9 is not on file yet, so you know exactly who to chase before January.

What if I forgot to classify some vendors?

The report catches it. Alongside your known vendors it surfaces unclassified payees, tags that received money out but are not yet marked as vendors, so nobody reportable slips through. Classify them and they roll into the totals.

Does it file the 1099 forms?

No. LedgerMCP prepares the report, total paid per vendor with thresholds and W-9 status flagged, and you or your CPA handle the filing. It is the year-end summary that makes filing quick, not an e-file service.

Can my AI prepare it?

Yes. Your agent tags vendor payments through the year, runs the 1099 report, and tells you who crossed $600 and who still owes a W-9. You get a clean list to act on instead of reconstructing payments from statements in April.

Get your 1099s ready free

No card required. Tag your contractor payments, run the report, and hand your CPA a clean list.

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