As the year draws to a close, it’s the perfect time for business owners to prepare for the upcoming Form 1099 filing season. The deadline for filing Forms 1099-NEC and 1099-MISC with the IRS and sending copies to payees is January 31, 2026. Businesses should presently review all vendor other payee information to ensure that an attendant and current Form W-8 or W-9 is on file, as well as verify that accounting records are up to date and that payments to non-employees are properly tracked.
What’s Changing for 2026 and Beyond?
Starting in 2027, when reporting is due for the year ended December 31, 2026, there will be significant changes to this reporting, namely that the filing threshold for Forms 1099-NEC and 1099-MISC will increase from $600 of total payments during the year to $2,000, and that for 2027 and subsequent years, the threshold will begin to be adjusted for inflation.
Remember, all income remains taxable to the recipient regardless as to whether or not a Form 1099 must be issued. So, if a contractor is paid $500 during 2025, it must report that income, even if no Form 1099 is issued, and in 2026, if a contractor earns $1,500, they must still report that income, even though the payor is again not required to send a Form 1099.
The above increase to the Form 1099 reporting threshold is the first since 1954, over 70 years ago. If the threshold had been indexed for inflation in 1954, only total payments over $7,200 would need to be reported on Forms 1099 in 2025.
If you have any questions regarding Form 1099 filings, please contact our team at info@mspc.cpa