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The New 1099 Threshold Changes Everything for Contractors
The New 1099 Threshold Changes Everything for Contractors
If you pay subs, the rules just changed.
The One Big Beautiful Bill Act raised the 1099 reporting threshold from $600 to $2,000.
That means fewer 1099s to file. Less paperwork. Less headache.
But here is what most contractors miss:
This does not mean you stop tracking payments.
You still need:
- W-9s from every sub and vendor
- Clean records of every payment
- Documentation for every deduction
The IRS did not lower the audit risk. They just moved one filing line.
Contractors who get sloppy here? They will celebrate less paperwork today. And pay for it in an audit tomorrow.
Smart move: keep tracking everything above $600 anyway. Because the deduction rules have not changed. And your books should always be tighter than the minimum.
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