1099-NEC $2,000 threshold for 2026: who gets a form
For payments made in 2026, file Form 1099-NEC for each non-employee you paid $2,000 or more for services in your trade or business (it was $600 through tax year 2025). If you withheld federal income tax under backup withholding, file regardless of the amount. On 1099-MISC, royalties ($10) and gross proceeds paid to an attorney ($600) keep their old thresholds. 2026 Forms 1099-NEC are due February 1, 2027. Source: IRS Instructions for Forms 1099-MISC and 1099-NEC (2026).
The reporting threshold for Forms 1099-NEC and 1099-MISC went up for tax years beginning after 2025. For tax year 2026 — the forms you file in early 2027 — the old $600 rule no longer decides who gets a 1099-NEC. Here is what changed, what did not, and how to sort a contractor list.
Quick steps
- Total by payee. Add up every 2026 payment per payee — the threshold applies to the year's total, not to single invoices.
- Apply the threshold. Mark payees with a total of $2,000 or more for services as must-file.
- Add withholding cases. Mark any payee you withheld federal income tax from (box 4), whatever the total.
- Collect missing W-9s. For every must-file payee, make sure you have a name, TIN and address from Form W-9 before January.
What changed
- 1099-NEC box 1 (nonemployee compensation): $2,000 or more, for tax years beginning after 2025. Earlier years: $600.
- 1099-MISC rents, other income, medical and health care payments and other boxes that used $600: now $2,000 as well.
- The IRS instructions say the amount may be adjusted for inflation in later years — check the figure again for tax year 2027.
What did not change
- Royalties on 1099-MISC: $10 or more.
- Gross proceeds paid to an attorney (1099-MISC box 10): $600 or more.
- Backup withholding: if you withheld federal income tax, you file for that payee regardless of the amount.
- Deadlines: 1099-NEC to recipients and the IRS by January 31 — in 2027 that is a Sunday, so February 1, 2027.
- E-filing is required when you file 10 or more information returns in total.
A worked example
A designer is paid $650 a month for three months in 2026: $1,950. Under the old rule that needed a 1099-NEC; for 2026 it does not. A developer paid one $2,000 invoice does need one — the rule is "$2,000 or more", so exactly $2,000 counts. A contractor paid $500 with backup withholding taken also needs one.
Doing it in Google Sheets
If your payments are in a sheet, a pivot table by payee gives the totals. The 1099 Ready add-on does the same grouping (by TIN, or by name and ZIP when the TIN is missing), applies the tax year 2026 thresholds and the withholding rule, and highlights missing W-9 data for must-file payees only.
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Sources: IRS — Instructions for Forms 1099-MISC and 1099-NEC (2026) · IRS — Information return penalties. Not tax advice — disclaimer.
FAQ
Is the $2,000 threshold for payments made in 2026 or for forms filed in 2026?
For payments made in 2026 (tax year 2026), reported on forms filed in early 2027. Forms filed in early 2026 for 2025 payments still used $600.
Does the $2,000 apply per invoice?
No. It applies to the total you paid the payee during the year.
Do I still need a W-9 from contractors under $2,000?
The threshold decides who gets a form; collecting a W-9 at onboarding is still how you get the TIN and address if a payee later crosses it. Ask a tax professional about your own policy.
Do payments to corporations need a 1099-NEC?
Generally no, with exceptions such as payments to attorneys. The IRS instructions list the exceptions.
Updated 2026-10-26.