The biggest change in the 1099 thresholds 2026 is for Forms 1099-NEC and 1099-MISC: for payments made after December 31, 2025, businesses generally must issue them only when payments to a person reach $2,000, up from $600. For payment apps and online marketplaces, Form 1099-K is required only when payments exceed $20,000 and 200 transactions, after the One Big Beautiful Bill Act restored the old threshold, as the IRS explains in its FAQs. These rules affect the forms issued in early 2027. Below is a summary by form and what businesses and recipients should do.
1099 Thresholds 2026 by Form
| Form | What it reports | 2026 threshold |
|---|---|---|
| 1099-NEC | Nonemployee compensation to contractors | $2,000 or more |
| 1099-MISC | Rents, prizes, other income, medical and health care payments | $2,000 or more for most boxes; $10 for royalties |
| 1099-MISC (attorneys) | Gross proceeds paid to attorneys | $600 or more |
| 1099-K | Payment card and third-party network payments | Card payments: any amount. Payment apps and marketplaces: over $20,000 and over 200 transactions |
| 1099-INT | Interest | $10 or more |
| 1099-DIV | Dividends | $10 or more |
| 1099-R | Retirement plan and IRA distributions | $10 or more |
| 1099-B | Broker sales | Any amount |
If backup withholding applies to a payment, a Form 1099 is required regardless of amount. For reference, the 2025 summary table from the original version of this article is shown below.
What Changed for 1099-NEC and 1099-MISC
The One Big Beautiful Bill Act raised the general information-reporting threshold under Sections 6041 and 6041A from $600, which had been in place since the 1950s, to $2,000 for payments made after December 31, 2025. Payments made in 2025 still used the $600 threshold on forms filed in early 2026. Starting with 2026 payments, a business that pays a contractor $1,500 for the year generally does not need to issue a 1099-NEC. See changes to Form 1099-NEC for 2026.
What Changed for 1099-K
The American Rescue Plan Act of 2021 would have lowered the 1099-K threshold for payment apps to $600. The IRS delayed that change, phasing it down to $5,000 for 2024 and $2,500 for 2025. The One Big Beautiful Bill Act then retroactively reinstated the original rule: platforms report only when payments exceed $20,000 and the number of transactions exceeds 200. Card payments processed by merchant acquirers are still reported regardless of amount. See Form 1099-K.
Income Is Still Taxable Below the 1099 Thresholds 2026
The thresholds decide whether a payer files a form, not whether income is taxable. A freelancer who earns $1,800 from a client, or sells $15,000 of goods through a marketplace at a profit, still must report that income. Self-employed people owe self-employment tax once net earnings reach $400. Keep your own records of every payment. See side hustle taxes for 2026.
Due Dates for 2026 Forms (Filed in 2027)
| Form | Copy to recipient | Filed with the IRS |
|---|---|---|
| 1099-NEC | February 1, 2027 | February 1, 2027 |
| 1099-MISC | February 1, 2027 (February 16 for certain boxes) | March 1, 2027 on paper; March 31, 2027 electronically |
| 1099-K | February 1, 2027 | March 1, 2027 on paper; March 31, 2027 electronically |
January 31, 2027 falls on a Sunday, so January deadlines move to the next business day. Businesses filing 10 or more information returns in total must file electronically.
Examples Under the 1099 Thresholds 2026
- Graphic designer: A small business pays a designer $1,900 by check during 2026. No 1099-NEC is required, but the designer still reports the $1,900.
- Bookkeeper: The same business pays a bookkeeper $2,400 by bank transfer. A 1099-NEC is required by February 1, 2027.
- Attorney: The business pays a law firm $1,200 in settlement proceeds on a client’s behalf. Because gross proceeds to attorneys use a $600 threshold, a 1099-MISC is required.
- Online seller: A hobbyist sells $12,000 of items in 450 transactions on a marketplace. No 1099-K is required because payments are under $20,000, but any profit is taxable.
- Landlord’s repair contractor: A rental property owner pays a plumber $2,600 through a payment app for business services. The payment app may report it on a 1099-K if the plumber crosses that platform’s thresholds, so the landlord generally does not also issue a 1099-NEC.
What Businesses Should Do Now
- Collect a Form W-9 from every contractor before you pay them, even if you expect to stay under $2,000.
- Track payments by vendor so you know who crosses $2,000 in 2026.
- Do not issue forms for payments made by credit card or PayPal for goods and services; those are reported by the payment processor on Form 1099-K.
- Remember the different thresholds for attorneys ($600) and royalties ($10).
- Use the IRS Information Returns Intake System or a filing service to e-file.
What Recipients Should Know
- You may receive fewer 1099s for 2026. That does not change what you owe.
- If a form is wrong, ask the payer to issue a corrected one rather than ignoring it.
- Personal reimbursements from friends or family through payment apps are not income, but keep records in case a form is issued.
- Make quarterly estimated payments on self-employment income. See 2026 quarterly tax payments.
Frequently Asked Questions
What is the 1099-NEC threshold for 2026?
$2,000 or more paid to a contractor in 2026, up from $600 for 2025 payments.
What is the 1099-K threshold for 2026?
For payment apps and online marketplaces, more than $20,000 in payments and more than 200 transactions.
Do I have to report income if I don’t get a 1099?
Yes. All income is taxable whether or not you receive a form.
When are 2026 Forms 1099-NEC due?
February 1, 2027, to both the recipient and the IRS, because January 31 falls on a Sunday.
Final Thoughts
The 1099 thresholds 2026 mean fewer forms for small payments, but the reporting rules for income have not changed. Businesses should keep tracking contractor payments and collecting W-9s, and recipients should keep their own records of every dollar earned.
Have questions about how this applies to your situation? Book a free consultation with Aric and get answers from a CPA.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
