Number of the week · checked 19 October 2026
The 1099 threshold for contractors is now $2,000.
A 2025 law raised the Form 1099-NEC and 1099-MISC threshold from $600 to $2,000 for payments made after 2025. Forms for 2026 payments are due 1 February 2027.
The short version
A 2025 tax law raised the Form 1099-NEC and 1099-MISC reporting threshold from $600 to $2,000, for payments made after 2025.
So for 2026, file a 1099-NEC for each contractor you paid $2,000 or more. They're due February 1, 2027, because January 31 is a Sunday.
Gross proceeds paid to attorneys, like settlements, still start at $600. The amount rises with inflation from 2027.
In numbers
| Payments made in | Threshold |
|---|---|
| 2025 and earlier | $600 |
| 2026 | $2,000 |
| 2027 and later | $2,000, adjusted for inflation |
Sources
Checked on 19 October 2026.
"increased to $2,000 and may be adjusted for inflation beginning in calendar year 2027."
IRS: Instructions for Forms 1099-MISC and 1099-NEC. Revised 12/2026. "Enter gross proceeds of $600 or more paid to an attorney in connection with legal services"
IRS: Instructions for Forms 1099-MISC and 1099-NEC. Gross proceeds paid to attorneys. "Section 6041(a) is amended by striking '$600' and inserting '$2,000'."
Public Law 119-21, section 70433. Signed 4 July 2025; for payments made after 31 December 2025.
Forms are due 31 January. In 2027 that is a Sunday, so the IRS weekend rule moves the due date to Monday 1 February. Payments to most corporations still need no 1099-NEC.
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