This is general information, not advice for a specific return. The IRS instructions for Forms 1099-MISC and 1099-NEC are the source to confirm it in.
What changed?
The general dollar amount at which a business must report payments on Form 1099-NEC and Form 1099-MISC went from $600 to $2,000. The change comes from the One Big Beautiful Bill Act, signed on July 4, 2025. The IRS instructions put it this way: for tax years beginning after 2025, the minimum amount increased to $2,000.
Which year does it apply to?
This is the part that gets mixed up.
| Payments made in | Reported in | General threshold |
|---|---|---|
| 2025 | Early 2026 | $600 |
| 2026 | Early 2027 | $2,000 |
| 2027 and later | The following year | $2,000, which may be adjusted for inflation |
The threshold goes by the year of the payment, not the year you file. The forms filed in early 2026 were for 2025 and still used $600. The first forms that use $2,000 are the ones you prepare in January 2027, for payments made during 2026.
What did not change?
- What kinds of payment are reported. The dollar line moved. The kinds of payment and payee that are covered did not.
- Lower amounts for some payments on Form 1099-MISC. Royalties are still reported from $10, and a form is still required when federal income tax was withheld under the backup withholding rules, whatever the amount. The $2,000 line replaced the general $600 line, not these. The instructions list each one.
- The need for a W-9. You still need the vendor’s name, address and taxpayer number to file.
- Other 1099 forms. Other forms in the 1099 series have their own rules and amounts. Check each one separately.
- State rules. State filing rules are separate. A state can require its own filing and does not have to follow the federal amount. Check your state.
What should I do before the end of 2026?
- Collect a W-9 when you first pay a vendor, whatever the amount. At the first payment you do not know who will reach $2,000 by December.
- Track payments by vendor through the year, so that at year end the list of who reached the threshold is a report, not a research project.
- Keep $600 for anything that belongs to 2025. A late or corrected form for tax year 2025 reports 2025 payments, so it still uses $600.
- Check the IRS instructions before filing. The exact wording of the threshold, the payments that keep a lower amount, and each year’s adjusted amount are in the instructions.
How does a close tool help with 1099s?
LedgerDock works the 1099 candidate list out from payments already recorded in the books, and shows which of those vendors have no W-9 on file. The filing line it uses is $600 for payments through 2025 and $2,000 for payments made in 2026. The 1099 and W-9 tutorial shows the screen.