If your business made payments in 2026 for independent contractors, rent, or other reportable expenses, a few changes to Form 1099 could affect your year-end reporting.
For payments made in 2026, the reporting threshold has increased for many common payment types, and Forms 1099-NEC and 1099-MISC include new fields. These changes apply to the forms businesses will prepare and file in early 2027. As a reminder, all thresholds apply to aggregate payments made during the tax year, not just to individual transactions.
Here’s what to know—and what you can do now to make January easier.
Higher Reporting Thresholds for 2026
For many payments made on or after January 1, 2026, the annual reporting threshold has increased from $600 to $2,000. Common payment types covered by the increase include:
- Independent contractor and other nonemployee service payments, reported on Form 1099-NEC.
- Rents, other income, and medical and health care payments, reported on Form 1099-MISC.
The threshold generally applies to total reportable payments to a recipient over the calendar year, rather than to each individual payment. Beginning in 2027, the $2,000 threshold may be adjusted annually for inflation.
Some thresholds remain unchanged. Gross proceeds paid to an attorney, such as certain settlement payments handled through an attorney’s office, remain reportable at $600. Royalties remain reportable at $10.
Keep Collecting Forms W-9
A higher reporting threshold may reduce the number of Forms 1099 your business needs to issue, but it doesn’t eliminate the need for good vendor records.
We recommend continuing to collect a completed Form W-9 from every new vendor before making a payment.
A vendor you expect to use once may become a regular resource. Smaller payments can accumulate throughout the year, and collecting tax information upfront helps prevent a scramble when it’s time to prepare your forms.
Before year-end, review your vendor records, identify any missing Forms W-9, and confirm that the information you have on file is current.
New Fields for Cash Tips and Overtime
Forms 1099-NEC and 1099-MISC now include fields for reporting cash tips and qualified overtime compensation.
We expect these changes to affect relatively few of our clients. If your business has payment arrangements involving tips or overtime for nonemployees, contact HBL so we can review whether additional reporting or changes to previous regulation apply.
Important Dates for 2026 Forms 1099
For most Forms 1099-NEC and 1099-MISC, recipient copies are due Monday, February 1, 2027, because January 31 falls on a Sunday. Certain Forms 1099-MISC reporting amounts in boxes 8 or 10 have a later recipient deadline.
IRS filing deadlines are separate: Form 1099-NEC is due February 1, 2027. Form 1099-MISC is generally due March 1, 2027, if filed on paper, or March 31, 2027, if filed electronically.
If HBL prepares your Forms 1099, please keep these additional dates in mind:
- Mid-December 2026: We expect to send engagement letters for 2026 Form 1099 preparation.
- January 4, 2027: Return your signed engagement letter.
- January 15, 2027: Provide all information needed to complete your forms.
Getting your information to us early gives our team time to review your records and address questions before the filing deadlines.
Get Ready for Year-End With HBL
These are the updates we expect to affect most of our clients. Other changes apply in more limited situations, and unusual payment types or vendor arrangements may require a closer look.
If you have questions about the new thresholds, your vendor records, or which payments require reporting, contact HBL. We’ll help you understand what applies to your business and prepare for the upcoming filing season.