E-Accounting Solutions
IRS Tax Update · 2026
Effective January 1, 2026
Form 1099-NEC & 1099-MISC
IRS Raises the
1099 Reporting
Threshold
1099 Reporting
Threshold
Starting January 1, 2026, businesses must file Forms 1099-NEC and 1099-MISC only when contractor payments reach $2,000 or more per year — up from the previous $600 limit. The threshold will be adjusted for inflation annually beginning in 2027.
Was: $600
Now: $2,000
Inflation-adj. 2027+
New Threshold
$2,000
Per Contractor / Per Year
Stay Compliant in 2026
Not sure how the new threshold affects your business? Our team at E-Accounting Solutions is ready to help you navigate every change with confidence.
Contact Us Today
All income remains taxable regardless of whether a 1099 is filed. This post is for informational purposes only. Consult a qualified tax professional.
E-Accounting Solutions · © 2026
OBBBA · One Big Beautiful Bill Act
1099 Threshold Changes
for 2026 Reporting
| Tax Form | Filing Now Tax Year 2025 | Filing Early 2027 Tax Year 2026 |
|---|---|---|
| 1099-NEC Nonemployee Compensation | $600 | $2,000 |
| 1099-MISC Miscellaneous Income | $600 | $2,000 |
| 1099-K (TPSOs) PayPal, Venmo, etc. | $20,000 + 200 transactions |
$20,000 + 200 transactions |
| 1099-K Payment Cards | No threshold | No threshold |
| 1099-INT / DIV / R Other 1099 Forms | Unchanged — own thresholds apply |
Unchanged — own thresholds apply |
New 2026 threshold
Form name
Unchanged / prior rule
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