1099s for Landscaping and Snow Removal Services

Property owners, management companies, and businesses often hire independent contractors to maintain their grounds — mowing lawns in the summer and clearing snow in the winter. While these payments may seem routine, the IRS treats them as taxable compensation that often requires reporting on Form 1099-NEC.

Who Needs a 1099-NEC

If you pay $600 or more during the year to an individual or business that is not incorporated (such as a sole proprietor or single-member LLC), you are required to issue a Form 1099-NEC to report those payments. This includes payments made by:

• Homeowner associations and property managers
• Commercial property owners
• Businesses contracting for groundskeeping, landscaping, or snow removal

The threshold applies to the total annual payments — not each job. If you hire the same contractor multiple times throughout the year, add those amounts together to see if you meet the $600 reporting requirement.

Payments That Must Be Reported

Reportable payments include:

• Lawn care and landscaping services
• Tree trimming or removal
• Snow plowing and salting
• Yard cleanup and maintenance contracts

If you paid by check, cash, or direct deposit, those amounts count toward your 1099-NEC total. However, if you paid entirely by credit card or PayPal, those payments are reported by the payment processor on Form 1099-K, not by you.

Information You’ll Need

Before filing, make sure you have a completed Form W-9 from each contractor. This provides their legal name, address, and taxpayer identification number (TIN). Use that information to correctly prepare Form 1099-NEC.

Failure to collect a W-9 or report accurate information can lead to IRS penalties or backup withholding obligations.

Tips for Compliance

• Track all payments made to non-employees throughout the year.
• File Form 1099-NEC with the IRS by January 31 each year.
• Furnish a copy to each contractor by the same date.
• Use e-file software to simplify reporting and stay compliant with state filing rules.

Even small property owners who hire seasonal workers or local contractors must follow these rules — the IRS does not exempt individuals who make business-related payments.