1099 forms from Medicaid, brokers, and card processors: what NEMT companies receive and how to match them

Every January, a NEMT company that bills Medicaid, brokers, facilities, and card-paying riders gets a stack of information returns: Form 1099-MISC from the state or a health plan, possibly another 1099 from a broker or facility, and Form 1099-K from the card processor. Each one reports what a payer says it paid you during the past calendar year. They often differ from your revenue line, and the IRS uses them to check that you reported the payments. This guide explains which form comes from whom and how to tie each one to your books before you file.

Which form each payer sends

The payer’s view of your service decides the form. The IRS instructions put payments to providers of medical or health care services in box 6 of Form 1099-MISC, and payments for other services in box 1 of Form 1099-NEC. Card payments go on Form 1099-K, filed by the processor instead of the customer. Here is what to expect for payments made in 2026:

All four forms are due to you by January 31. A payer can send one statement covering every 1099-MISC box it reports.

Medicaid and health plan payments: box 6

Medicaid money is reported in box 6, “Medical and Health Care Payments,” and the reporting reaches corporations. The 1099-MISC instructions say the usual exemption for payments to corporations “does not apply to payments for medical or health care services provided by corporations, including professional corporations.” They also tell medical and health care insurers to include what they pay under health, accident, and sickness insurance programs, which covers a Medicaid managed care plan paying for rides.

The threshold changed for 2026. For payments made after December 31, 2025, a payer reports box 6 payments of $2,000 or more a year, up from $600, and the amount may be adjusted for inflation starting in 2027. The forms that arrive in January 2027 are the first under the higher figure.

How a state builds the form varies. Pennsylvania’s Department of Human Services issues a 1099-MISC to each taxpayer ID that received Medical Assistance payments in the prior calendar year. A provider with several location codes adds up the “NEW YTD BALANCE” from the last remittance advice of the year for each location to arrive at the 1099 total. Texas issues one 1099 report for each legacy provider ID, combining fee-for-service and managed care information, and recovers money a provider owes from later managed care or fee-for-service payments.

Brokers and facilities: box 6, NEC, or no form at all

A broker or facility that pays you directly makes its own call:

• It treats rides as health care services. You get a 1099-MISC with the amount in box 6, even if you are a corporation.
• It treats rides as ordinary business services. You get a 1099-NEC with the amount in box 1, if you are an individual, a partnership, an estate, or in some cases a corporation, and you were paid at least $2,000. Payments to corporations are generally not reported on these forms, so an incorporated company may receive nothing.
• It paid you by card. The IRS instructions say card payments must be reported on Form 1099-K by the payment settlement entity and are not reported on Form 1099-MISC or 1099-NEC. Those payments show up on your processor’s 1099-K instead. How facilities pay NEMT invoices covers card payments from facilities.

When a broker pays you, expect the form from the broker, not the state. Under the IRS rule for payments made on behalf of another person, a company that performs management or oversight functions in connection with a payment is the payer for reporting purposes, even when someone else is the source of the funds.

Card processors and payment apps: Form 1099-K

Card payments are reported on Form 1099-K from two kinds of companies:

• Your card processor. If customers pay you directly by credit, debit, or gift card, the processor sends a 1099-K no matter how many payments you took or how much they totaled.
• Payment apps and online marketplaces. These third-party settlement organizations must file only when payments for goods or services exceed $20,000 in more than 200 transactions, though they may file below that. The One, Big, Beautiful Bill restored that threshold retroactively, as the IRS explained on October 23, 2025.

The amount in box 1a is gross. The IRS says it is not adjusted for fees, credits, refunds, shipping, cash equivalents, or discounts. Your bank deposits are net of processing fees and refunds, so expect the 1099-K to run higher than the deposits, and deduct those items on your return.

Why the totals do not match your books

A 1099 is a payer’s count of payments made during the calendar year. Your books count revenue your own way. The usual gaps:

1. Payment date versus ride date. December rides paid in January land on next year’s form. On the accrual method you booked them this year.
2. Money recovered from later payments. When a payer takes back an overpayment by reducing later payments, your deposit is smaller than the claims it paid. Ask the payer whether its form reports amounts before or after those recoveries, and use its year-end remittance totals to check. Medicaid recoupment explains how recoveries appear.
3. More than one provider number or location. Each may carry its own year-to-date total, or its own form.
4. Payments under another taxpayer ID. Pennsylvania’s FAQ describes rendering providers whose claims did not list the group’s number, so the payment and the 1099 went to the individual. It will not issue a revised form in that case.
5. Refunds sent after year end. In Pennsylvania, fixing payments made under the wrong provider number, by adjusting the claims and refunding the department, must be done before the tax year closes to affect that year’s form.
6. Card fees and refunds. The 1099-K is gross; your deposits are net.

Here is an example of a reconciliation for one Medicaid payer. The company’s accrual books show $398,000 of 2026 revenue from that payer, and its 1099-MISC shows $405,500 in box 6:

1. Start with the 1099: $405,500.
2. Subtract $31,200 received in January 2026 for December 2025 rides: $374,300.
3. Add $29,800 for December 2026 rides paid in January 2027: $404,100.
4. Subtract a $6,100 overpayment for 2026 rides that the company refunded in February 2027: $398,000, which matches the books.

Keep that schedule with your tax records. On the cash method your income follows deposits, so the gap is usually smaller, but the overpayments and refunds still need explaining. Your tax preparer will want the schedule for every payer that sent a form.

Getting a wrong form corrected

Only the filer can correct a 1099. Contact the company named as the payer or filer, explain what is wrong, and keep the original and every letter. Pennsylvania’s Medical Assistance 1099 unit, for example, takes questions only in writing. It accepts two reasons for a corrected form: a taxpayer ID that does not match the recipient’s name, or an amount that conflicts with the claims the department processed and paid that year. It does not adjust claims itself.

Do not wait on a correction to file. The IRS says to report all income from goods and services on your return whether or not you receive a form, and to file even if a corrected 1099-K has not arrived. If a 1099-K shows your name and Social Security number but your business files Form 1120, 1120-S, or 1065, the IRS says to have the form corrected.

B-notices and backup withholding

A mismatch between the name and taxpayer ID on your form reaches you as a B-notice. The IRS sends the payer a CP2100 or CP2100A notice listing the mismatch, and the payer must act within 15 business days. Health plans follow the same steps; CareSource, for example, tells providers to return a completed Form W-9 to the email or fax on the notice before the date it shows.

• First notice. The payer sends a First “B” Notice and a blank Form W-9. Return the signed W-9 with the correct name and number. If you do not, the payer must start backup withholding no later than 30 business days after the date of the IRS notice.
• Second notice within three years. The payer sends a Second “B” Notice and no W-9, because a W-9 no longer resolves it. You must send a copy of IRS Letter 147C confirming an EIN, or a Social Security card for an individual, within 30 business days of the notice date. The payer may not ask for this information by phone.
• The rate is 24 percent. It applies to the payments that follow until the matter is fixed.

Medical and health care payments to corporations are not exempt from backup withholding, the Form W-9 instructions say, so an incorporated company is not safe from it. As an example, 24 percent withheld from a $30,000 monthly Medicaid payment is $7,200 a month. You get credit for it on your return, but that money is missing from every payment until then.

Keeping every payer on one name and number

Most 1099 problems start with a name or number that differs from one payer to the next. Use one legal name and one taxpayer ID on your Medicaid enrollment, broker agreements, facility vendor files, and card processor account. On Form W-9 (Rev. March 2024):

• Single-member LLC treated as disregarded. Line 1 is the owner’s name, line 2 is the LLC’s name, and the number is the owner’s SSN, or the owner’s EIN if the owner has one.
• LLC taxed as a partnership or corporation, or a corporation. The entity’s name and EIN.

When you change entities or get a new EIN, update every payer before the first payment under the new number. Payments made under the old number stay on the old number’s form.

The forms you send

You may owe forms too. If you pay a contract driver, a mechanic who is not incorporated, or another non-employee $2,000 or more for services in 2026, file Form 1099-NEC with the IRS and give the worker a copy, both by January 31. Once you file 10 or more information returns of any type in a year, you must file them electronically. Whether a driver can be paid on a 1099 at all is a separate question, covered in NEMT drivers: 1099 or W-2. Tax basics for NEMT owners covers the rest of the tax calendar.

Matching payments in HealthRide

Reconciling a 1099 goes faster when every payment already sits next to its invoice. In HealthRide, one ledger ties every payment to its invoice and trip: card payments made through pay links or saved cards, and the checks, facility payments, and insurance payments you record. For any period you choose, the payer summary lists each payer’s completed trips, the revenue billed, and the balance still owed, and invoices export in the format QuickBooks imports directly. See reports.