Updated November 5, 2026. Quick answer: For payments made in calendar year 2027 the Form 1099-NEC threshold is $2,100, per IRS Rev. Proc. 2026-35 (announced November 5, 2026). For payments made after December 31, 2025 the base threshold was $2,000, up from $600, under Public Law 119-21 section 70433, and the law adjusts that amount for inflation for any calendar year after 2026.
More on the 2027 tax figures: the information return penalty for 2027.
More on the 2027 tax figures: the cash method gross receipts test for 2027.
More on the 2026 tax figures: the 2026 Form 1099-NEC threshold.
What the IRS announced for 2027
The IRS announced the 2027 inflation-adjusted amounts on November 5, 2026 in Rev. Proc. 2026-35, section 3.52. This page keeps the 2026 figure as the prior year.
The thresholds
| Period | Reporting threshold | Source |
|---|---|---|
| Payments in 2025 | $600 | 26 U.S.C. 6041(a), 2024 edition |
| Payments in 2026 | $2,000 | Section 6041(a), as amended by Public Law 119-21 section 70433 |
| Payments in 2027 | $2,100 | Rev. Proc. 2026-35, section 3.52; indexed under section 6041(h) |
| Rounding of the indexed increase | Nearest $100 | Section 6041(h), added by section 70433 |
The Act changed the dollar amount in section 6041(a) from $600 to $2,000, and it “shall apply with respect to payments made after December 31, 2025”. Before the Act the section covered payments “of $600 or more in any taxable year, or, in the case of such payments made by the United States”.
Form 1099-NEC follows the same number
The rule for payments for services is tied to the same threshold: the Act replaces the old text so the amount “equals or exceeds the dollar amount in effect for such calendar year under section 6041(a)”. Backup withholding is tied to it as well, using “the dollar amount in effect for such calendar year under section 6041(a)”.
How the indexed figure was set
The Act adds: “In the case of any calendar year after 2026, the dollar amount in subsection (a) shall be increased by an amount equal to” the amount times the cost-of-living adjustment under section 1(f)(3), with 2025 as the base year, and “If any increase under the preceding sentence is not a multiple of $100, such increase shall be rounded to the nearest multiple of $100.”
How the IRS described the timing
Rev. Proc. 2025-32 says: “For payments made after December 31, 2025, the base threshold under section 6041(a) is $2,000.” “This base threshold amount is adjusted for inflation for returns required to be filed in calendar year 2027.” The statute ties the adjustment to a calendar year after 2026, and the IRS wording refers to returns filed in 2027. Rev. Proc. 2026-35, section 3.52 settles it: “For payments made in calendar year 2027, the reporting threshold for payments described in § 6041(a) is $2,100.” The figure is a multiple of $100, as the rounding rule requires.
Common mistakes
- Using $600 or $2,000. $600 applies to the old rule, before the Act, and $2,000 to payments made in 2026; for 2027 the figure is $2,100.
- Using a 2027 dollar figure from a vendor. The IRS figure is $2,100 for payments made in 2027, in Rev. Proc. 2026-35.
- Mixing up the threshold with the filing date. The date is a separate rule, covered on the Form 1099-NEC filing deadline page.
Related: the Form 1099-NEC filing deadline, Form 1099-NEC box 1, Form 1099-NEC and 1099-MISC boxes, Form 1099-MISC, and the 2027 tax numbers.
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Answer againSources
- Public Law 119-21 (One Big Beautiful Bill Act), July 4, 2025, enacted text (U.S. Government Publishing Office): www.govinfo.gov
- Internal Revenue Service, Rev. Proc. 2025-32, tax year 2026 inflation-adjusted amounts, as modified by the One, Big, Beautiful Bill Act: www.irs.gov
- 26 U.S.C. 6041, Information at source (U.S. Code, 2024 edition, U.S. Government Publishing Office): www.govinfo.gov
Read from the primary documents linked above on October 28, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the IRS itself is the right place to confirm anything consequential.