1099 Season Is Here: What's New for 2026 + Your Client Checklist
Oct 28, 2026 · @Charla Farris
The biggest 1099 change in 70 years starts with the forms you'll send in January 2027: you now only issue a 1099-NEC or 1099-MISC when you paid someone $2,000 or more in 2026 — up from $600.
That's good news for less paperwork. But the deadlines didn't move, the IRS changed how forms get e-filed, and contractors still owe tax on every dollar. Here's what you need to know, whether you're sending 1099s or getting them, plus a simple checklist to get ready now.
What's new for 2026
1. The 1099-NEC and 1099-MISC threshold jumps to $2,000. The One Big Beautiful Bill Act raised it from $600 for payments made on or after January 1, 2026. Pay a contractor $1,500 this year? No 1099 needed. Pay them $2,000 or more? You still file. Starting in 2027, the $2,000 amount will adjust for inflation each year.
2. One exception: royalties. Royalties reported on the 1099-MISC still use the old $10 threshold.
3. Backup withholding follows the new threshold. The trigger for backup withholding now lines up with the $2,000 amount, too.
4. The 1099-K stays at $20,000 and 200 transactions. The planned $600 rule for Venmo, PayPal, Square, Etsy and similar platforms is gone for good. A platform only has to send a 1099-K when you get more than $20,000 and more than 200 transactions. (A few states, like Massachusetts, Maryland and Vermont, use a lower state threshold.)
5. New IRS e-file system. The IRS shuts down its old FIRE e-file system on November 19, 2026. Starting January 1, 2027, everything goes through the new IRIS system. If you e-file directly with the IRS, you need a new IRIS Transmitter Control Code — your old FIRE code won't carry over. If we or your software file for you, there's nothing extra for you to do.
What hasn't changed
All income is still taxable. No 1099 doesn't mean no tax. Contractors must report every dollar they earn.
The deadlines. The 1099-NEC is still due to both the contractor and the IRS at the end of January, with no automatic extension.
The 10-form e-file rule. If you file 10 or more information returns in total (W-2s and 1099s combined), you must e-file.
Penalties. Late or missing forms cost $60 to $340 per form (2026 amounts; the IRS adjusts them for inflation each year). The penalty can hit twice — once for the IRS copy and once for the contractor's copy.
You still need a W-9 from everyone. You won't know in March who will cross $2,000 by December, so collect it before the first payment.
State rules may differ. Many states have their own 1099 filing requirements — check yours or ask us.
Key deadlines for 2026 payments (filed in 2027)
January 31, 2027 falls on a Sunday, so the January deadlines move to Monday, February 1.
Form | Send to recipient | File with IRS (paper) | File with IRS (e-file) |
1099-NEC | Feb 1, 2027 | Feb 1, 2027 | Feb 1, 2027 |
1099-MISC (most boxes) | Feb 1, 2027 | Mar 1, 2027 | Mar 31, 2027 |
1099-MISC (box 8 or 10) | Feb 16, 2027 | Mar 1, 2027 | Mar 31, 2027 |
If you're a contractor getting 1099s
You'll likely get fewer forms this year — but you owe tax on the same income. A client who paid you $1,800 won't send a 1099, and the IRS still expects you to report it.
Keep your own record of every payment from every client.
Don't wait for 1099s to add up your income — use your bank deposits and invoices.
If you sell or get paid through apps like PayPal or Venmo, you'll only get a 1099-K if you passed $20,000 and 200 transactions. The income still counts either way.
Getting less paperwork doesn't change your estimated tax payments. Set money aside as you earn it.
Your 1099 checklist
Now through December
☐ Make a list of everyone you paid for services, rent, prizes or royalties in 2026.
☐ Total what you paid each person or business for the year.
☐ Mark everyone at $2,000 or more (or $10+ in royalties) — they need a 1099.
☐ Collect a signed W-9 from anyone you're missing one for. Check names and Tax ID numbers.
☐ Note which payees are corporations (most don't need a 1099 — attorneys are the exception).
☐ Leave out payments made by credit card, debit card or PayPal — the card company or platform reports those.
☐ Update mailing and email addresses for each contractor.
Early January
☐ Choose how you'll file: through us, your accounting software, or the IRS IRIS portal.
☐ If you file 10 or more forms in total (W-2s included), plan to e-file.
☐ If you e-file directly with the IRS, set up your IRIS account and Transmitter Control Code.
☐ Check whether your state needs its own copy.
By February 1, 2027
☐ Send 1099-NEC copies to contractors and file them with the IRS.
☐ Send 1099-MISC copies to recipients.
By March 31, 2027
☐ E-file your 1099-MISC forms with the IRS (March 1 if filing on paper).
☐ Save copies of every form, W-9 and filing confirmation.
This post is for general informational purposes only and is not tax, legal, or financial advice. Reading it does not create a client relationship. Tax laws change often, and this information is current as of the date posted. Every situation is different, so talk with a qualified tax professional before acting on anything here.
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