1099 Forms for 2026: New $2,000 Threshold for Contractor and Rent Payments

If your business pays contractors, rent or other service providers, the rules for Form 1099 changed for payments made in 2026. Now is a good time to get your records in order, so January filing goes smoothly.

The threshold went up to $2,000

For payments made in 2026, you generally file Form 1099-NEC for a non-employee only if you paid them $2,000 or more during the year. For payments made in 2025 and earlier, the threshold was $600.

The same $2,000 threshold now applies to several boxes on Form 1099-MISC, including rents and other income.

Who this applies to

This matters for restaurants, convenience stores, trucking and logistics companies, and other small businesses that pay:

• Independent contractors, freelancers or owner-operators for services
• Rent for an office, store or equipment
• Attorneys (attorney payments are reported even if the law firm is incorporated)

In general, you don't need to file for payments to an incorporated business, unless the payment is for medical or legal services.

What to do now

1. Collect a Form W-9 from each contractor and landlord you pay, so you have their correct name and taxpayer ID before January.
2. Total your 2026 payments to each person or business and flag anyone at $2,000 or more.
3. Plan to e-file if you have 10 or more information returns in total (W-2s and 1099s count together).

Key deadlines

• Form 1099-NEC: due to the IRS and to the contractor by January 31. In 2027, January 31 falls on a Sunday, so plan for Monday, February 1, 2027.
• Form 1099-MISC: copy to the recipient by January 31; due to the IRS by February 28 on paper or March 31 if filed electronically.

Gig workers and online sellers: Form 1099-K

Payment apps and online marketplaces must send a Form 1099-K only when you receive more than $20,000 in more than 200 transactions for goods or services. You might get one below that level, too.

Money from family or friends as a gift, or to split a meal or rent, is not taxable income.

This is general information, not advice for your specific situation.

Questions? Book a time at calendly.com/amrtax or call (732) 500-5941. New client? Start here.

Source: IRS: Instructions for Forms 1099-MISC and 1099-NEC; IRS: Am I required to file a Form 1099?; IRS: Form 1099-K threshold FAQs; IRS: Understanding your Form 1099-K