1099-NEC threshold for 2026: what changed from 2025?

Use the threshold for the payment year

The IRS distinguishes payments made before 2026 from payments made in 2026. A return prepared in early 2026 for 2025 payments still uses the 2025 rules. A 2026 payment review uses the 2026 rules, even when the forms are filed the following year.

Sources: Am I required to file an information return? · Publication 1099: General instructions for information returns

Add qualifying payments to the same payee

The threshold applies to the relevant annual payment total for the payee, not separately to each invoice. A business that makes four qualifying direct service payments of $600 to the same contractor in 2026 has a $2,400 starting total for the reporting review.

Use one paying business and one calendar year. Reconcile payments across all its relevant accounts before concluding that a contractor falls below the threshold. Do not add unpaid invoices or duplicate bank exports to increase the total.

Sources: Instructions for Forms 1099-MISC and 1099-NEC

A dollar amount is only one reporting condition

The business purpose, recipient classification and payment method still need review. Corporate exceptions have exceptions of their own, including rules for legal-service payments. An LLC name alone is not a federal tax classification.

The IRS requires Form 1099-NEC when federal income tax was withheld under backup-withholding rules, regardless of the payment amount. A “below threshold” label must not hide that case.

Sources: Am I required to file an information return? · Instructions for Forms 1099-MISC and 1099-NEC

Below the threshold does not mean tax-free income

An information-return threshold governs the payer’s reporting obligation. It does not decide whether the recipient has taxable income. Do not tell a contractor that receiving no 1099 means the income can be left off a tax return.

This guide is for business payers preparing contractor information. A contractor assessing their own tax return, deductions or estimated tax payments has a different task.

Sources: Reporting payments to independent contractors · Publication 1099: General instructions for information returns

Plan filing and recipient delivery separately

The general 1099-NEC due date is January 31 of the following year, with the next-business-day rule when it falls on a weekend or applicable legal holiday. Check the IRS instructions for the exact due date, any relevant relief, and your circumstances.

The federal date does not resolve every state requirement. Decide who will submit the return, who will furnish the recipient statement, and who will retain acceptance records. If you plan to use IRIS, arrange portal access before the filing rush.

Sources: Instructions for Forms 1099-MISC and 1099-NEC · Publication 1099: General instructions for information returns · E-file information returns with IRIS

Update the preparation, not just the headline

Select the correct year in the tool, check the review rules and ensure your accountant sees the same year on the export. Keep old-year corrections separate from current-year preparation.

Beside supports separate 2025 and 2026 preparations with year-specific thresholds. It generates recipient Copy B using the IRS template for the selected year. The 2026 form uses box 1a for nonemployee compensation; 2025 uses box 1. Downloading the form is not IRS submission.