What is the 1099-NEC and 1099-MISC threshold for 2026?
For payments made in 2026 and later, a business files Form 1099-NEC for nonemployee compensation of $2,000 or more, up from $600. The same $2,000 floor applies to rents, prizes and awards, other income and medical payments on Form 1099-MISC, and it is indexed for inflation starting in calendar year 2027.
Sources checked . Current through .
What changed
The One Big Beautiful Bill Act (P.L. 119-21, §70433) replaced the $600 amount in IRC §6041(a) with $2,000. For calendar years after 2026, the $2,000 is indexed for inflation (IRC §6041(h)), rounded to a multiple of $100.
Which boxes use $2,000
The current instructions say to report:
- Form 1099-NEC, box 1a: nonemployee compensation of $2,000 or more
- Form 1099-MISC: at least $2,000 in rents (box 1), prizes and awards and other income (box 3), and medical and health care payments (box 6)
Which amounts did not change
The instructions still list at least $600 in gross proceeds paid to an attorney (Form 1099-MISC, box 10). Royalties and broker payments in lieu of dividends keep their own thresholds.
Backup withholding
The instructions tie backup withholding to the same threshold: the $2,000 minimum applies both to filing these returns and to backup withholding on those payments.
Sources
- IRC §6041(a) and (h): Information at source
- Instructions for Forms 1099-MISC and 1099-NEC: What's New and Box 1a instructions
Not tax advice. Check the sources against your client's facts before relying on this.