Federal reporting update · 2026 payments
Paying contractors? The 1099-NEC threshold has changed.
For payments made in 2026, the general federal Form 1099-NEC reporting threshold is $2,000 or more per payee, up from $600 for payments made before 2026. This applies to qualifying business payments for nonemployee services.
Keep recording every contractor payment and collecting W-9 information. Payment method, recipient type, and other exceptions still matter; backup withholding can require reporting regardless of the amount. The form-reporting threshold does not determine whether income is taxable.
A useful next step: review your contractor list and year-to-date totals before year-end, then confirm filing requirements with your tax professional.
Read the IRS instructions ↗General threshold$2,000Qualifying 2026 payments
per payee, per year
per payee, per year
Rechecked October 12, 2026