Form 1099-NEC: who gets one and the new $2,000 threshold
Starting with payments made in 2026, the reporting threshold jumped from $600 to $2,000. Here’s who you still need to send forms to.
The short answer
For payments made in 2026, you generally file Form 1099-NEC for each non-corporate contractor you paid $2,000 or more for services, up from $600. Forms go to the IRS and the contractor by January 31; in 2027 that’s February 1, because the 31st is a Sunday.
Who gets a 1099-NEC
Individuals, partnerships and most LLCs you paid for services in the course of your business. Payments to corporations are generally exempt, but payments to attorneys for legal services are reportable even if the firm is a corporation.
The threshold change
For payments made in 2025, the threshold was $600. For payments made in 2026, it’s $2,000, and it will be adjusted for inflation starting in 2027. The contractor still owes tax on every dollar, whether or not a form is issued.
Collect a W-9 first
Ask every new contractor for Form W-9 before the first payment. It gives you their legal name and taxpayer ID, and saves a scramble in January.
Card and app payments
If you paid a contractor by credit card or through a payment app, the payment processor may report it instead on Form 1099-K, so you typically don’t issue a 1099-NEC for those payments.
Questions
Do I need to send a 1099 to my contractor?
For payments made in 2026, generally yes if you paid a non-corporate contractor $2,000 or more for services by check, cash or bank transfer.
When are 1099-NEC forms due?
January 31 to both the IRS and the recipient. In 2027 the deadline is February 1, because January 31 falls on a Sunday.
Your situation isn’t general. A CPA can tell you how this applies to you.
Ask about thisGeneral information as of October 2026, not advice for your situation. Tax rules change; check with a professional before acting.