Updated October 29, 2026. Quick answer: For payments made after December 31, 2025, so for all of 2026, the reporting threshold for Form 1099-NEC and the related information returns is $2,000, up from $600, under Public Law 119-21 section 70433. Rev. Proc. 2025-32 states the same base threshold, and the law adjusts the amount for inflation for calendar years after 2026.
On deductions by profession: tax deductions for bookkeepers.
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 |
| Rounding of later indexed increases | 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)”.
What the IRS says
Rev. Proc. 2025-32 says: “For payments made after December 31, 2025, the base threshold under section 6041(a) is $2,000.” The same Revenue Procedure notes that the base threshold is later adjusted for inflation. This page states the 2026 threshold only.
How later years will be 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.”
Common mistakes
- Using $600 for 2026 payments. It applies to the old rule, before the Act.
- Treating the threshold as a per-contractor filing option. It is the amount at which the payer must report.
- 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 2027 Form 1099-NEC threshold, the Form 1099-NEC filing deadline, Form 1099-NEC box 1, Form 1099-NEC and 1099-MISC boxes, and the 2026 tax brackets.
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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 29, 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.