The 1099-NEC threshold is now $2,000. Here's which forms it applies to
For payments made in 2026, the 1099-NEC reporting threshold is $2,000, up from $600. The forms due February 1, 2027 use it; 2025 payments still use $600.
IRS: "For payments made before 2026, the reporting threshold is $600. For payments made in 2026, the reporting threshold is $2,000. For payments made after 2026, see Pub. 1099 for the inflation-adjusted reporting threshold."
Which year uses which number
| Payments made in | Filed | 1099-NEC threshold |
|---|---|---|
| 2025 | Early 2026 (and any late filings or corrections) | $600 |
| 2026 | Due February 1, 2027 (January 31 is a Sunday) | $2,000 |
| 2027 and later | 2028+ | Inflation-adjusted, per Pub. 1099 |
What it means for your 2026 filing
- Fewer forms. Contractors you paid more than $600 but less than $2,000 in 2026 generally don't need a 1099-NEC, unless you withheld backup withholding (Box 4), in which case you file regardless of the amount.
- Still the same e-file rule. If you have 10 or more information returns in total, you must e-file. From 2027 that means IRIS, because FIRE closes on November 19, 2026.
- Don't filter too early. The threshold applies to the total paid to a payee during the year, so add up all payments per TIN before you drop anyone.
- Keep your W-9s. Payees under the threshold this year may be over it next year.
How IRIS CSV uses the threshold
When you choose tax year 2026 in the checker, any 1099-NEC row whose Box 1 is below $2,000 with nothing withheld in Box 4 gets a warning (not an error). The IRS will still accept the form; you just may not need to file it. For tax year 2025, the warning uses $600.
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FAQ
Does the $2,000 threshold apply to the 1099-NECs due in early 2027?
Yes. Forms filed in early 2027 report payments made during 2026, and the IRS says the threshold for payments made in 2026 is $2,000. Late or corrected forms for 2025 payments still use $600.
Do I still file if I withheld backup withholding?
Yes. The IRS says you must file a 1099-NEC for anyone you withheld federal income tax from under backup withholding (Box 4), whatever the amount.
What about 1099-MISC?
The IRS points to Pub. 1099 for the 1099-MISC thresholds, which vary by payment type. Check each box rather than assuming one number.