If you paid an independent contractor $2,000 or more in 2026 for work done for your business, you generally need to send them a Form 1099-NEC and file it with the IRS by February 1, 2027. The old $600 threshold no longer applies to most of these payments.
What changed
For payments made after December 31, 2025, the reporting threshold for Form 1099-NEC rose from $600 to $2,000. Rent and most other Form 1099-MISC boxes rose to $2,000 too.
A few amounts did not change. Gross proceeds paid to an attorney are still reported at $600, and royalties at $10.
The $2,000 figure may be adjusted for inflation starting in 2027, so check the number again next year.
When is Form 1099-NEC due in 2027?
The usual date for Form 1099-NEC is January 31, both for sending the recipient a copy and for filing with the IRS. January 31, 2027 is a Sunday, so the deadline moves to the next business day: Monday, February 1, 2027.
Form 1099-MISC has different IRS filing dates. February 28, 2027 is also a Sunday, so the paper deadline moves to Monday, March 1, 2027. If you file electronically, it’s March 31, 2027. Most recipients still need their copy by February 1, 2027.
What to do now
- List everyone you paid in 2026 who isn’t an employee. Include contractors, freelancers, and anyone you paid for services.
- Add up what each one received. Your bookkeeping software should show this if your books are current.
- Collect any missing W-9s. Form W-9 gives you the name, address and tax ID you need. It’s much easier to ask now than in late January.
- Check who’s over $2,000. Then decide who’s filing the forms, you or your bookkeeper.
- Get your books current before January. If your records are behind, your totals may be wrong.
Questions owners ask
Do I send a 1099 to someone I paid $1,500 in 2026?
For services paid in 2026, a 1099-NEC is generally not required under $2,000. You should still keep your records of the payment.
Do I still use $600 for payments I made in 2025?
Yes. The $2,000 threshold applies to payments made after December 31, 2025.
Can I file my 1099s on paper?
Only if you have fewer than 10 information returns in total. At 10 or more, counting your forms together, you generally have to file electronically.
What if my books are months behind?
That’s common, and it can be fixed. A book cleanup gets your records caught up so your totals are right before the deadline.
Need a hand?
Blessed and Balanced Books helps small business owners keep their books accurate and handles 1099 filing. Jennipher Moser, based in Winter Springs, Florida, is an Advanced QuickBooks ProAdvisor. Book a free consultation and we can look at where your books stand before the deadline.
Checked against IRS instructions on November 4, 2026. This article is general information, not tax advice. Rules can change and every business is different, so check with your tax professional about your situation. Sources: IRS Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026), IRS Form 1099-NEC and independent contractors, IRS General Instructions for Certain Information Returns.