10/26/2026
Big update that affects most business owners who pay contractors: starting with 2026 payments (the 1099s you’ll file in early 2027), the threshold for issuing a 1099-NEC or 1099-MISC jumps from $600 to $2,000. If you paid a contractor, freelancer, or vendor less than $2,000 this year, you likely won’t need to file a 1099 for them at all — real paperwork relief if you’re in trucking, construction, janitorial, real estate, or restaurants and deal with a lot of smaller vendor payments.
One thing not to confuse this with: the 1099-K threshold for payment apps (Venmo, Square, etc.) is separate — still $20,000 and 200 transactions for 2026.
Not sure how this changes your recordkeeping for next year? That’s exactly what we help clients sort out before it becomes a January scramble.
Rony Figueroa, MBA, Owner
