Filing 1099s isn’t anyone’s favorite pastime, but changes are coming that could make your life easier as a business owner:

📄 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.

📄 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.

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.