TLDR
- If your platform pays contractors, sellers or creators in the US, you must file a 1099 for each payee above the threshold. Once you have 10 or more information returns in total, you must file them electronically (IRS, T.D. 9972). Starting with 2026 payments, the 1099-NEC/MISC threshold rises to $2,000, and the 1099-K threshold is back to over $20,000 and over 200 transactions (IRS i1099mec, IRS IR-2025-107).
- We compared 7 tools that platforms use to collect W-9s, match TINs and e-file 1099s: TaxBandits, Stripe Connect 1099, Tax1099 (Zenwork), Avalara 1099 & W-9 (formerly Track1099), Trolley, Tipalti and Sovos 1099 Pro. Every price below comes from the vendor’s live pricing page as of Oct. 12, 2026.
- For 1,000 1099-NECs filed federally, published prices range from about $1,008 (TaxBandits) and $1,142 (Avalara) to $1,311 (Tax1099, before its $349 API plan), $2,990 (Stripe, if you set your own Connect pricing; $0 if Stripe handles pricing) and $4,399 (Trolley’s Tax module plus statements).
- Abound (withabound.com), a 1099 API that used to appear on many shortlists, was acquired in Nov. 2024 and its API is no longer live. If you still integrate with it, plan your migration now.
Each January, a platform that pays people has to do three things. It files a 1099 with the IRS (and often with states), sends a copy to every payee, and then deals with the corrections and B-notices that come back. Do it wrong and the penalties are per form. For returns due in 2026, the IRS charges $60, $130 or $340 per return depending on how late the correct return is. Intentional disregard costs $680 per return with no annual cap (IRS). The same rates apply separately to the payee statement, so one bad TIN can be penalized twice.
This guide is for marketplaces, gig and creator platforms, vertical SaaS products that pay their users’ vendors, and fintechs that run payouts. It compares the tools that handle the 1099 workflow by API or embedded UI: W-9/W-8 collection, TIN matching, federal and state e-filing, recipient delivery and corrections.
If your question is about consumer tax filing (letting users file their own 1040 inside your app), see 6 Best Embedded Tax APIs for Fintechs.
The 2026 rules your 1099 tool has to handle
| Rule | What it means | Source |
|---|---|---|
| E-file threshold | Must e-file once you have 10+ information returns in total across all form types (W-2s included) | IRS; T.D. 9972 / i1099gi |
| 1099-NEC / 1099-MISC threshold | $2,000 for payments made after 2025 (up from $600), indexed for inflation from 2027 | IRS Instructions for 1099-MISC/NEC; Pub 1099 |
| 1099-K threshold (TPSOs) | File only if a payee gets over $20,000 and over 200 transactions. Restored retroactively by the One Big Beautiful Bill. Some states set lower thresholds | IRS IR-2025-107 |
| Penalties (returns due 2026) | $60 / $130 / $340 per return. $680 for intentional disregard, with no cap | IRS |
| Where to e-file yourself | The IRS IRIS portal or FIRE system. Free, but there’s no automation, payee delivery or state filing beyond the Combined Federal/State Filing (CF/SF) program | IRS e-file info returns |
What this means in practice: the $2,000 NEC threshold cuts the number of forms a lot of small platforms must file. But your tool still has to track payments all year, apply the right threshold per form type and per state, and handle 1099-K payees separately. Most of the vendors below compute thresholds automatically. Check that yours applies state-specific thresholds. Stripe, for example, says it applies state thresholds automatically (Stripe docs).
Comparison table: 7 best 1099 e-filing APIs and platforms
| # | Tool | Best for | Model | Federal e-file price (published) | State e-file | TIN matching | API |
|---|---|---|---|---|---|---|---|
| 1 | TaxBandits | SaaS and payroll platforms embedding 1099s | Pay per form, prepaid credits | $2.75 (first 10) → $0.80 (501–2,000) | From $0.95/form alongside federal | Yes (API) | Yes, REST plus a Transaction API |
| 2 | Stripe Connect 1099 | Platforms already paying out on Stripe Connect | Per form, or included | $0 if Stripe handles Connect pricing. Otherwise $2.99/form | $1.49/form (direct-file states) | Yes | Dashboard plus API, inside Connect |
| 3 | Tax1099 (Zenwork) | Accounting-led teams needing 40+ form types and many no-code integrations | Pay per form plus optional plan | $2.99 (first 20) → $0.72 (501–1,000) | Varies by state | 250 free on Teams | Requires Scale plan, $349/yr |
| 4 | Avalara 1099 & W-9 | Companies already on Avalara for sales tax | Pay as you go or annual subscription | $3.10 (first 15) → $0.63 (501+) | $1.49/form | $0.45/form | Yes |
| 5 | Trolley | Global payout platforms that want payouts and tax in one tool | Annual modules plus per-statement fees | Tax module $2,399/yr plus $2.00 per IRS statement | Included in workflow | TIN validation in onboarding | Yes |
| 6 | Tipalti | Finance teams automating AP or mass payouts with built-in tax collection | Monthly platform plus transaction fees | Mass Payments from $249/mo. 1099 e-filing via Tax1099 integration | Via partner | Tax ID validation in 62 countries | Yes |
| 7 | Sovos 1099 Pro | Enterprises filing thousands of forms of many types | Annual subscription by form volume | Example: eFile + Print & Mail, up to 200 forms, $1,069/yr | Direct state filing (NEC, W-2) | Bulk + real-time included | Enterprise / desktop + cloud |
How we picked
We started with the vendors buyers search for alongside “1099 API”, “1099 e-filing for platforms” and “W-9 collection API”. We kept a tool only if it met all of these:
- IRS e-filing of 1099-NEC, 1099-MISC and/or 1099-K, done by the vendor (not just form generation).
- Programmatic or embedded access: an API, or e-filing built into a payout platform you already integrate.
- Public, checkable information on pricing or at least the pricing structure. Where a price isn’t public, we say so.
- Still operating. We dropped Abound after confirming its production API host no longer resolves following its Nov. 2024 acquisition.
We scored each tool on total cost at 100, 1,000 and 10,000 forms, how well it covers states (including withholding states), how much of the W-9 → TIN match → file → deliver → correct chain it automates, and how much engineering it takes to embed.
1. TaxBandits: best API for SaaS and payroll platforms embedding 1099s
TaxBandits runs a developer API that covers W-9 collection, TIN matching and e-filing of 1099-NEC, 1099-MISC, 1099-K and other 1099s, plus W-2, 94x, 1042-S and ACA forms (TaxBandits API). Its 1099 Transaction API lets a platform record payouts throughout the year and generate 1099s from them at year-end. That’s the right design for marketplaces that don’t want to rebuild annual totals in January.
Pricing (published): federal 1099 filing costs $2.75/form for the first 10, $1.75 for 11–100, $1.15 for 101–250, $1.00 for 251–500 and $0.80 for 501–2,000. State filing alongside federal starts at $0.95/form. A paper-filing surcharge of $1.85/form applies in states that require paper (TaxBandits pricing). One catch: volume pricing applies only if you send all forms in one submission or buy prepaid credits. The API draws down prepaid credits. For software partners who resell filing, TaxBandits mentions a negotiable revenue-share model.
Best for: payroll, HR, accounting and vertical SaaS products that want to offer 1099 filing as a feature for their own customers’ payees.
Watch out for: prepaid credits don’t expire but aren’t refundable. Batch your submissions, or the per-form price won’t drop.
2. Stripe Connect 1099: best for platforms already paying out on Stripe
If your payouts already run through Stripe Connect, Stripe can generate 1099-NEC, 1099-MISC and 1099-K forms from that payout data. It e-files them with the IRS and states, verifies TINs against the IRS database, and e-delivers or mails copies to recipients (Stripe Connect 1099).
Pricing (published): the fee depends on your Connect pricing model. If Stripe handles pricing for your connected accounts, tax reporting has no fee. If you handle pricing, it’s $2.99 per 1099 e-filed with the IRS, $1.49 per 1099 e-filed directly with a state, and $2.99 per 1099 mailed. E-delivery is free (Stripe Connect pricing).
Best for: marketplaces and platforms on Connect. The data is already in Stripe, so there’s no separate payment ledger to reconcile.
Watch out for: Stripe won’t file with states when forms include state withholding. It exports those forms for you to file yourself (Stripe docs). It also only covers payments that went through Stripe. Payees you paid by wire or another processor need a second tool. Delaware and Pennsylvania typically reject state filings without the state ID (Stripe 1099-NEC docs).
3. Tax1099 (Zenwork): best for accounting-led teams that need many form types
Tax1099 is Zenwork’s IRS-authorized e-file platform. It covers 1099, 1098, 1095, W-2 and other forms, with more than 12 no-code integrations including QuickBooks, BILL and Xero (Tax1099 pricing). Tipalti also uses Tax1099 as its 1099 e-filing partner (see #6).
Pricing (published): IRS 1099 e-filing costs $2.99/form for the first 20, $2.59 for 21–150, $1.99 for 151–250, $1.42 for 251–500 and $0.72 for 501–1,000, with custom pricing above 1,000. The on-page calculator shows a $1.90 average per form at 500 forms. Plans: Essential (pay as you go, no subscription), Teams at $249/year (collaboration plus 250 free TIN matches) and Scale at $349/year, which adds API access, bulk TIN matching and notice handling (Tax1099 pricing).
Best for: finance teams filing many form types across entities, especially if they already use QuickBooks, BILL or Xero.
Watch out for: if you want to embed filing in your product, budget for the $349 Scale plan on top of per-form fees.
4. Avalara 1099 & W-9 (formerly Track1099): best if you already use Avalara
Avalara’s 1099 & W-9 product (the former Track1099) handles W-9 collection, IRS and state e-filing, recipient delivery and corrections. It shares one vendor relationship with Avalara’s sales-tax tools.
Pricing (published): IRS e-filing costs $3.10/form for forms 1–15, $2.30 for 16–165, $1.30 for 166–500 and $0.63 for 501+. That price includes e-delivery, e-corrections and PDF/CSV downloads. Add-ons: state e-filing $1.49/form, TIN matching $0.45/form, address validation $0.07, and postal mail from $1.84 per mailing. An annual subscription option starts at a 100-form tier (Avalara pricing).
Best for: SaaS and e-commerce companies that already run Avalara for sales tax and want one vendor. At high volume, $0.63 per form above 500 is one of the lowest published rates.
Watch out for: TIN matching and state filing are priced separately. Add them in before comparing with vendors that bundle them.
5. Trolley: best for global payout platforms that want payouts and tax in one tool
Trolley is a payout platform (bank transfers, wallets, checks, white-label onboarding) with a Tax module. It collects W-9/W-8 forms during onboarding, validates TINs and generates year-end statements (Trolley IRS compliance). Trolley Plus adds multi-jurisdiction reporting: IRS plus OECD digital platform reporting (DAC7).
Pricing (published, US): the Tax module is $2,399/year and covers one jurisdiction. Statements cost $2.00 per IRS statement and $3.00 per digital-platform-reporting statement. The Pay module is a separate $2,399/year, and a full Standard bundle with Trust and Sync totals $7,895/year plus transaction fees (Trolley pricing).
Best for: creator, affiliate and marketplace platforms paying people in many countries that also need EU DAC7 reporting. Compare it with the payout-first options in 9 Best Cross-Border Payout APIs.
Watch out for: the fixed annual fee makes Trolley expensive if you file a few hundred forms and only pay US payees.
6. Tipalti: best for finance teams automating AP or mass payouts with built-in tax collection
Tipalti is an AP automation and mass-payments platform. Its supplier and payee portal collects W-9 and W-8 forms and validates tax IDs across 62 countries against 3,000+ rules, and it covers US, UK, EU and Canadian tax compliance (Tipalti pricing). For the actual 1099 e-filing, Tipalti integrates with Tax1099 (Tipalti tax FAQ).
Pricing (published): Tipalti Accounts Payable from $99/month. Tipalti Mass Payments from $249/month. Both add transaction fees, and complex setups can need extra professional services (Tipalti pricing).
Best for: finance-led companies where 1099s come out of supplier and contractor payables. For the wider AP picture, see best accounts payable automation software.
Watch out for: e-filing goes through a partner integration, so confirm how corrections and state filings are handled in that handoff.
7. Sovos 1099 Pro: best for enterprises filing thousands of forms of many types
1099Pro, now part of Sovos, has served high-volume filers for over 20 years. It handles 1099, 1098, 1042-S and W-2 reporting, with bulk and real-time TIN matching included in every cloud subscription. It also offers direct state filing for 1099-NEC and W-2, plus CF/SF (1099Pro; 1099Pro FAQ).
Pricing (published): subscriptions are priced by annual form volume and renew every April 1. Sovos’s own example: the eFile + Print & Mail plan for up to 200 forms costs $1,069, and overages are billed at the plan’s per-form rate ($1,069 / 200 = $5.35 per form). Filers with more than 5,000 forms are directed to sales, and eFileMyForms is Sovos’s pay-as-you-go option (1099Pro FAQ; Sovos 1099 Professional FAQ).
Best for: banks, insurers and large enterprises with many form types, where print-and-mail and audit trails matter more than an embeddable API.
Watch out for: at low volumes the published per-form rate is the highest in this list. It’s an enterprise filing workflow, not a developer-first API.
What 1,000 1099s actually cost: worked example
Scenario: a US marketplace issues 1,000 Forms 1099-NEC, files federally only, e-delivers recipient copies and submits everything in one batch.
| Tool | Calculation (published tiers) | Federal cost | Notes |
|---|---|---|---|
| TaxBandits | 10×$2.75 + 90×$1.75 + 150×$1.15 + 250×$1.00 + 500×$0.80 | $1,007.50 | One submission or prepaid credits required |
| Avalara 1099 & W-9 | 15×$3.10 + 150×$2.30 + 335×$1.30 + 500×$0.63 | $1,142.00 | Plus $450 if you TIN-match all 1,000 at $0.45 |
| Tax1099 | 20×$2.99 + 130×$2.59 + 100×$1.99 + 250×$1.42 + 500×$0.72 | $1,310.50 | Plus $349/yr Scale plan for API access = $1,659.50 |
| Stripe Connect | 1,000×$2.99 | $2,990 (or $0) | $0 if Stripe handles your Connect pricing |
| Trolley | $2,399 Tax module + 1,000×$2.00 | $4,399 | Includes W-9/W-8 and TIN workflow. Payouts priced separately |
| Sovos 1099 Pro | Quote at this volume | n/a | The 200-form plan works out to $5.35/form |
| Tipalti | Platform from $249/mo + transaction fees + Tax1099 filing | n/a | Tax is bundled into the AP/payouts platform |
How to read this: at 1,000 forms, the cheapest per-form API (TaxBandits) costs about a quarter as much as Trolley’s bundled model. But that comparison only holds if your payout data already lives somewhere you can export. If you pay through Stripe Connect with Stripe-handled pricing, filing is free, and that beats everything here. If you pay globally through Trolley or Tipalti, much of the fee pays for W-8 collection, TIN validation and DAC7, which you’d otherwise build or buy separately.
Then do the math on penalties. One TIN mismatch caught late costs at least $60 on the return plus $60 on the payee statement, so TIN matching at $0.45 pays for itself if even 1 in 250 payees has a bad TIN.
How to choose
- You pay out on Stripe Connect: start with Stripe’s built-in 1099s. Add TaxBandits or Avalara for off-Stripe payees and withholding states.
- You’re a SaaS product offering 1099s to your customers: TaxBandits (Transaction API plus partner revenue share) or the Tax1099 Scale plan.
- You already run Avalara: Avalara 1099 & W-9, with TIN matching turned on.
- You pay people in many countries and owe DAC7: Trolley Plus or Tipalti.
- You’re an enterprise with 5,000+ forms and many form types: Sovos 1099 Pro, or quotes from all of the above.
For earlier steps in the payee lifecycle, see 9 Best Marketplace Payout APIs, 8 Best Instant Payout Providers for Gig and Creator Platforms and, for business payees, 10 Best KYB Providers.
FAQ
Do I have to e-file 1099s?
Yes, if you file 10 or more information returns in total in a calendar year, counting W-2s and all 1099 types together. The rule has applied since returns due in 2024 under T.D. 9972 (IRS).
What is the 1099-NEC threshold for 2026?
$2,000 for payments made in 2026 (it was $600), indexed for inflation starting in 2027 (IRS).
Did the 1099-K threshold change?
Yes. The One Big Beautiful Bill retroactively restored the federal threshold to over $20,000 and over 200 transactions per payee. Some states have lower thresholds (IRS).
Can I file 1099s with the IRS for free?
Yes, through the IRS IRIS portal or FIRE. But you get no automated payee delivery, no year-round payment tracking and limited state filing, which is why platforms with hundreds of payees use an API.
What’s the cheapest 1099 API?
At 1,000 forms, among published prices, TaxBandits (~$1,008) and Avalara (~$1,142). If you’re on Stripe Connect with Stripe-handled pricing, Stripe’s 1099 filing has no fee.
Is Abound still available?
No. Abound was acquired in Nov. 2024 and its production API is no longer live. Teams still integrated with it should migrate to one of the tools above.
Does TIN matching matter?
Yes. Penalties apply both to the return and to the payee statement, starting at $60 each per form. Matching costs about $0.45/form at Avalara and is included in Sovos subscriptions and Tax1099’s Teams plan (250 matches).
