How do I add sales tax to my invoice?

Enter your state's sales tax rate in the Tax Rate (%) field under Adjustments. For example, enter 8.875 for New York or 10.25 for Chicago. The tax amount is calculated automatically.

How do I create an invoice for 1099 contract work?

Fill in your name or business name, add your services as line items, and set payment terms (Net 30 is standard). Your client will issue you a 1099-NEC at year end for payments over $600 — your invoice is your record of the work billed.

Can I invoice without an EIN?

Yes. Sole proprietors and individual freelancers can invoice using their personal name and address — no EIN required. Just enter your name in the Company / Name field. If you have an EIN, you can include it in the notes field.

1099 Contracting 5 min readMarch 17, 2026

How to Invoice for 1099 Contract Work (2026 Guide)

As a 1099 independent contractor, sending proper invoices is one of the most important habits you can build. It protects you legally, helps you track income for tax time, and makes you look professional to clients.

What Is a 1099 Contractor?

A 1099 contractor (also called an independent contractor or self-employed worker) is someone who provides services to clients without being an employee. The name comes from the IRS Form 1099-NEC, which clients use to report payments to contractors of $600 or more per year.

Unlike employees who receive W-2s, 1099 contractors are responsible for paying their own taxes — including self-employment tax (15.3%) on top of regular income tax.

What to Include on a 1099 Contractor Invoice

Your name or business name

Use your legal name, LLC name, or DBA. This must match what is on your W-9.

Your address and contact info

Business or home address, email, and phone number.

Client name and billing address

The company or individual you are contracting for. For corporations, include the accounts payable address.

Invoice number

A unique sequential number (e.g. INV-001). Critical for your records and your client's accounting team.

Invoice date and due date

When the invoice was issued and when payment is expected (Net 15, Net 30, or Due on Receipt).

Description of services rendered

Be specific — list project names, dates worked, or deliverables. Vague line items slow down approvals.

Hours or quantity × rate = amount

Show your math clearly. If hourly, list hours worked × hourly rate. If fixed fee, state the project price.

Total amount due in USD

The final amount the client owes you.

Payment instructions

How to pay: ACH bank transfer, Zelle, PayPal, check, or wire. Include your account details if using ACH.

How 1099 Invoicing Relates to Taxes

The $600 Threshold

If a single client pays you $600 or more in a calendar year, they must send you a Form 1099-NEC by January 31 of the following year. Your invoices are the paper trail that supports these forms — save them all.

Self-Employment Tax

As a 1099 contractor, you pay both the employee and employer portions of Social Security and Medicare — 15.3% on net self-employment income up to the annual wage base. Factor this into your rates when negotiating with clients.

Quarterly Estimated Taxes

Contractors typically pay estimated taxes quarterly (April 15, June 16, September 15, January 15). Your invoices help you track total income per quarter so you can estimate what you owe.

Should You Charge Sales Tax?

Most service-based 1099 work (consulting, development, writing, design) is not subject to sales tax in most US states. However, some states (like New York and Texas) tax certain services. Always verify for your specific service type and state.

When to Send Your Invoice

Fixed-price projects: Send the invoice the same day you deliver the final work.
Hourly work: Send weekly or bi-weekly for ongoing engagements, or at the end of each month.
Retainer arrangements: Send on the first of each month (or last day of the prior month) for the upcoming period.
Deposits: Send a deposit invoice (typically 25–50%) before starting any large project.

Common 1099 Invoicing Mistakes to Avoid

Sending invoices with no due date — clients will pay you last.
Using vague descriptions like "Services rendered" — be specific about what you delivered.
Forgetting to number your invoices sequentially — this matters for your accounting records and audits.
Not following up — send a polite reminder on the due date if payment has not arrived.
Putting your SSN on an invoice sent via email — use your EIN instead if a client needs it.

Also see: W-9 invoice generator, US invoice generator, and payment terms guide.

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