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OBBBAโ€™s New 1099 Filing Rules โ€“ What Businesses Need to Know

OBBBAโ€™s New 1099 Filing Rules โ€“ What Businesses Need to Know

Filing 1099s isnโ€™t anyoneโ€™s favorite pastime, but changes are coming that could make your life easier as a business owner:

๐Ÿ“„ Form 1099-NEC

If you pay independent contractors, the requirement has long been to issue a 1099-NEC for contractors with payments of $600+ per year.

Starting with payments made in 2026, that threshold jumps to $2,000. From 2027 onward, it will adjust annually for inflation in $100 increments.

๐Ÿ“„ Form 1099-K

These are issued by platforms like PayPal, Square, and Stripe, when certain thresholds are met. The OBBBA reverses the planned drop to $600.
Effective retroactively to 2022, a 1099-K is only required if BOTH:

  • More than $20,000 in payments, and
  • More than 200 transactions in a year.

This rollback means fewer forms for both platforms and payees.