Changes to 1099’s

Article | August 04, 2026

Authored by Weinlander Fitzhugh

1099 Changes for 2026 Filing Season (filed in Jan 2027)

• Higher 1099 Reporting Threshold (MAJOR CHANGE)
• 1099-NEC and 1099-MISC thresholds increase from $600 to $2,000 per payee starting with payments written as of 1/1/26.  This affects tax year 2026 (filed in 2027).   This threshold will be indexed annually for inflation.
• This significantly reduces the number of forms businesses must issue.
• Note: not all states follow the IRS guidelines on 1099 thresholds however Michigan DOES.
• 1099-K Threshold Reverted
• Returns to the original $20,000 and 200 transactions for third-party payment processors (e.g., PayPal, Venmo, this includes all credit card transactions), reversing previously planned lower thresholds.
• Form Changes and Eliminations
• 1099-NEC/MISC updated to capture certain tips and overtime compensation (not otherwise reported on a W-2).
• Forms now use separate address fields and expanded data capture. (see example on next page)
• Form 1099-H is eliminated.
• 1099-G adds a new Box 10 for family leave benefits (payments of family leave benefits under a governmental paid family and medical leave program).
• Beginning in 2026, digital assets used in real estate transactions must be reported on Form 1099-S.
• E-Filing Requirements Tightened
• Businesses must e-file if submitting 10 or more information returns (across all 1099 types).
• IRS is transitioning to the IRIS e-filing system, phasing out the FIRE system.

1099 Changes Summary Chart (2025–2026)

Example of new 1099 forms & updates to note:

• Addition of the separated name/address/city/state/zip fields for both payer & recipient
• Addition of boxes for cash tips & OT.  We likely would never use these boxes as this is for cash tips & OT NOT reported elsewhere on a W-2 but I wanted to point it out.