Do You Need to Send a 1099 in 2026? The $2,000 1099-NEC Threshold, the 2027 Deadline, and What Did Not Change

For 2026, the federal Form 1099-NEC threshold is $2,000. The old $600 trigger no longer applies to payments made after December 31, 2025. That one number decides who gets a form from your business in early 2027.

This guide covers what changed, what did not, when the 2026 forms are due, and where New Jersey stands. Every figure is sourced to the statute, the IRS, or the NJ Division of Taxation. It is current as of October 3, 2026.

Key takeaways:

• The 1099-NEC and 1099-MISC trigger is $2,000 or more per payee per calendar year, for payments made after December 31, 2025.
• Exactly $2,000 is reportable. The test is the yearly total, not a single invoice.
• Royalties ($10), attorney gross proceeds in box 10 ($600), and direct sales ($5,000) did not move.
• January 31, 2027 is a Sunday. Applying the IRS next-business-day rule gives Monday, February 1, 2027.
• New Jersey’s written trigger is still $1,000, and no NJ source found addresses the federal change.
• The backup withholding trigger moved with the threshold. The IRS lists the current rate as 24 percent.

What changed: the statute and the IRS wording

The One Big Beautiful Bill Act, Public Law 119-21, made the change in section 70433. The enrolled text says section 6041(a) “is amended by striking ‘$600’ and inserting ‘$2,000’” (Public Law 119-21, govinfo.gov). The effective-date clause applies the change “with respect to payments made after December 31, 2025.”

Form 1099-NEC follows the same number. Section 70433(c) rewrote the services rule in section 6041A(a)(2). The new test is a total that “equals or exceeds the dollar amount in effect for such calendar year under section 6041(a).”

The IRS has updated its own pages to match. The Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026) tell payers to file Form 1099-NEC for each person “to whom you have paid at least $2,000 in” two kinds of payments:

• “Services performed by someone who is not your employee (including parts and materials) (box 1a)”
• “Payments to an attorney (box 1a)”

One wording note. The statute keys on payments made after December 31, 2025. The instructions and Publication 1099 (2026) say “for tax years beginning after 2025.”

This post uses the statute’s payment-date framing. The rest of the bill is covered in the OBBB tax provisions guide for NJ businesses.

Who must file a 1099-NEC for 2026, and what counts

The form covers payments made in the course of a business. The IRS puts the change plainly on its page Am I required to file a Form 1099 or other information return?: “For payments made before 2026, the reporting threshold is $600. For payments made in 2026, the reporting threshold is $2,000.”

Three points on how the test works:

• It is a total per payee per calendar year. Four $500 invoices from one vendor add up to $2,000 and trigger a form.
• Exactly $2,000 is reportable. The statute says “or more” in section 6041(a) and “equals or exceeds” in section 6041A(a)(2).
• Parts and materials count. The instructions include them in the services figure for box 1a.

Form 1099-MISC uses the same $2,000 figure for rents, prizes and awards, and other income. The IRS says so on its Form 1099-NEC and independent contractors FAQ page, updated September 24, 2026.

Worker status comes before any threshold. A 1099-NEC is for non-employees.

A worker who is an employee belongs on payroll and gets a W-2. The 1099 vs W-2 take-home calculator shows the tax gap between the two, and ProAxis payroll handles the W-2 side.

What did not change

Section 70433 amended sections 6041, 6041A, and 3406 of the Internal Revenue Code. The instructions keep several other triggers where they were. Here are the lines most small businesses meet for 2026 payments:

Sources: the $10, $600, and $5,000 figures are in the Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026). The 1099-K test is in section 70432 of Public Law 119-21 and on the IRS Form 1099-K FAQs, updated September 29, 2026. The instructions list every box, including less common ones not shown here.

The attorney split trips people up. Payments to an attorney go in box 1a of Form 1099-NEC at the $2,000 level. Gross proceeds paid to an attorney stay in box 10 of Form 1099-MISC at $600.

Form 1099-K is a different form with a different rule. Payment apps and marketplaces file it, and both the $20,000 test and the 200-transaction test must be met. The Form 1099-K threshold guide covers the seller side.

Deadlines for 2026 forms filed in 2027

Federal rule first. Section 6071(c) of the Internal Revenue Code sets the Form 1099-NEC due date at January 31 of the following year.

The instructions say the same thing: “Section 6071(c) requires you to file Form 1099-NEC on or before January 31, using either paper or electronic filing procedures.” Publication 1099 lists January 31 for both the IRS copy and the recipient copy.

The instructions also carry a rolling rule. A due date that “falls on a Saturday, Sunday, or legal holiday in the District of Columbia” moves to “the next business day.”

Now the arithmetic. January 31, 2027 is a Sunday. Applying the IRS rule, the next business day is Monday, February 1, 2027.

As of October 3, 2026, neither the instructions nor Publication 1099 prints a 2027-specific date. Treat February 1, 2027 as a derived date, not an IRS-published one.

Form 1099-MISC runs later. The instructions set February 28 for paper filers and March 31 for electronic filers, under the same weekend and holiday rule. The ProAxis tax calendar tracks the full set of business filing dates.

New Jersey: the $1,000 trigger has not moved

New Jersey runs its own copy rule. The NJ Income Tax Withholding Instructions (NJ-WT, September 2025) require copies of 1099 information returns “when the amount paid or credited is $1,000 or more in a calendar year.”

The same sentence adds a second trigger: “if any New Jersey Income Tax was withheld from the payment.” Three more points come from the same document:

• The NJ copies are due “on or before February 15 of the following year.” If February 15 falls on a weekend or holiday, NJ-WT moves the date to the next business day.
• Filing is electronic only. Since tax year 2020, Form NJ-W-3 and all 1099 attachments must be filed electronically.
• Five filing channels are listed, including the IRS Combined Federal/State Reporting Program.

Here is the open question. As of October 3, 2026, no nj.gov source found addresses the federal change.

NJ-WT still reads $1,000. Whether a 2026 payment between $1,000 and $1,999.99 still needs an NJ copy is not stated.

February 15, 2027 is Washington’s Birthday, a legal holiday. Applying the NJ-WT next-business-day rule points to Tuesday, February 16, 2027.

Treat that as a derived date, not one New Jersey has published. Confirm both points with the NJ Division of Taxation before building a January list.

Backup withholding and the W-9

The backup withholding trigger moved with the reporting threshold. Section 70433(d) amended section 3406(b)(6)(A) by replacing $600 with “the dollar amount in effect for such calendar year under section 6041(a).” The What’s New entry in the instructions describes the amount for reporting “and/or perform backup withholding on those payments” as “increased to $2,000.”

One rule ignores the threshold. The instructions say a payer “must also file Form 1099-NEC for each person from whom you have withheld any federal income tax” under the backup withholding rules. That applies “regardless of the amount of the payment.”

The IRS backup withholding page states the current rate of 24 percent. That page also covers the payee side.

A person who begins to receive 1099-reportable payments must give the payer a taxpayer identification number in writing. The payee also certifies that the number is correct.

Form W-9 is how that happens. The current Form W-9 is the March 2024 revision. Under Recent developments, the About Form W-9 page says “None at this time.”

No change to the form was found as of October 3, 2026. Owners who pay contractors often collect a signed W-9 before the first payment, while the vendor still wants the check.

E-filing: IRIS replaces FIRE, and the 10-return rule

Two system changes land in the same filing season.

• FIRE is closing. The IRS FIRE page lists November 19, 2026, at 3 p.m. ET as the last day to file information returns through FIRE. After January 1, 2027, IRIS is the only IRS e-file system for information returns, including prior years and corrections.
• Publication 1099 says the same. “Beginning tax year 2026/filing season 2027, the Information Returns Intake System (IRIS) will be the only intake system for information returns.”
• The 10-return e-file rule still applies. The instructions state that T.D. 9972 “lowered the e-file threshold to 10 (calculated by aggregating all information returns).” That rule took effect for information returns required to be filed on or after January 1, 2024. Count every type of information return together, not 1099-NECs alone.

A year-end checklist for owners who pay contractors

Owners in this situation often work through a short list before December closes. None of it needs special software, but all of it is easier when the books are current.

• Collect W-9s before paying. Many payers hold the first check until the signed form arrives. Chasing a vendor in January is the hard way.
• Track payments by payee and calendar year. The $2,000 test is a yearly total. Four $500 invoices from the same vendor cross the line.
• Separate card and payment-app payments. Card companies and platforms report under the separate Form 1099-K rules. Tag those payments so they do not blend with checks, ACH, and cash.
• Review attorney payments. Payments to an attorney go on 1099-NEC at $2,000. Gross proceeds paid to an attorney stay in box 10 of 1099-MISC at $600.
• Flag any payee at $1,000 or more, or with NJ withholding. That is New Jersey’s written trigger today, and no NJ source found has changed it.
• Pick the e-file path early. FIRE closes November 19, 2026. IRIS is the only IRS system after January 1, 2027.

ProAxis Templates sells a 1099 Contractor Tracker & W-9 Kit for owners who do this themselves. It is a ProAxis Templates product, sold through Gumroad.

It includes a payment tracker by vendor and year, a W-9 checklist with request-email templates, and a filing-deadline organizer. It does not file forms for you.

Form 1099-NEC threshold FAQ

What is the Form 1099-NEC reporting threshold for 2026?

The federal threshold is $2,000 for payments made after December 31, 2025. The One Big Beautiful Bill Act, Public Law 119-21, section 70433, amended Internal Revenue Code section 6041(a) by striking $600 and inserting $2,000. A payer files Form 1099-NEC for each person paid at least $2,000 in the calendar year.

That covers services performed by a non-employee, including parts and materials, and payments to an attorney. Exactly $2,000 is reportable. Source: IRS, Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026).

Do I need to send a 1099 to a contractor I paid less than $2,000 in 2026?

Under the federal rule, Form 1099-NEC is generally not required when total 2026 payments to that person for services are below $2,000. One exception applies. A payer that withheld federal income tax under the backup withholding rules files the form regardless of the amount.

The threshold is a total for the calendar year, not a per-invoice test. Form 1099-NEC is an information return. Skipping it does not change whether the payment is a business expense or whether the contractor reports the income.

States can set their own copy rules, and New Jersey’s written trigger is still $1,000, so state filing can differ. Source: IRS, Am I required to file a Form 1099 or other information return? (updated July 10, 2026).

When are 2026 Forms 1099-NEC due?

Internal Revenue Code section 6071(c) and the IRS instructions set the Form 1099-NEC due date at January 31 of the following year. Publication 1099 lists January 31 for both the IRS copy and the recipient copy. When that date falls on a Saturday, Sunday, or legal holiday in the District of Columbia, the IRS instructions move it to the next business day.

January 31, 2027 is a Sunday. Applying that rule, 2026 Forms 1099-NEC filed and furnished by Monday, February 1, 2027 would be timely.

As of October 3, 2026, neither the instructions nor Publication 1099 prints a 2027-specific date. Source: IRS, Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026).

Did the Form 1099-K threshold change too?

Form 1099-K is a separate form with a separate rule. Section 70432 of the One Big Beautiful Bill Act set the test. A third-party settlement organization files Form 1099-K only when gross payments to a payee exceed $20,000 and the number of transactions exceeds 200.

Third-party settlement organizations are payment apps and online marketplaces. Both tests must be met.

The $2,000 1099-NEC threshold comes from a different section, 70433, and applies to the business that pays a contractor. Source: IRS, Form 1099-K FAQs (updated September 29, 2026).

Does New Jersey follow the new $2,000 federal 1099 threshold?

Not in any New Jersey source found as of October 3, 2026. The New Jersey Income Tax Withholding Instructions, NJ-WT (September 2025), still require copies of 1099 information returns at $1,000 or more paid in a calendar year. Copies are also required when any New Jersey income tax was withheld.

Those copies are due on or before February 15 of the following year and must be filed electronically. Copies that show New Jersey withholding are filed with Form NJ-W-3. New Jersey has not addressed the federal change, so the treatment of a 2026 payment between $1,000 and $1,999.99 is not stated.

Confirm with the New Jersey Division of Taxation before the filing season. Source: New Jersey Division of Taxation, NJ-WT (September 2025).

Did the backup withholding threshold change with the 1099-NEC threshold?

Yes. Section 70433(d) of the One Big Beautiful Bill Act amended Internal Revenue Code section 3406(b)(6)(A). The dollar trigger for backup withholding on these payments is now the amount in effect under section 6041(a), which is $2,000 for 2026.

The IRS instructions describe the threshold for reporting and backup withholding as increased to $2,000. The IRS backup withholding page states the current rate of 24 percent.

Form W-9 is still the March 2024 revision, and no change to it was found. Source: IRS, Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026).

Will the $2,000 1099-NEC threshold go up in 2027?

The statute indexes it. New Internal Revenue Code section 6041(h), added by section 70433(b), increases the $2,000 amount for inflation for calendar years after 2026. The formula is the cost-of-living adjustment in section 1(f)(3), measured from calendar year 2025.

Any increase is rounded to the nearest multiple of $100. As of October 3, 2026, the 2027 amount has not been published in the sources checked, so 2026 is the only year with a known figure. Source: Public Law 119-21, section 70433(b), govinfo.gov.

Keeping contractor payments organized for year-end

The higher threshold removes some forms. It does not remove the tracking. A payer still needs a running total per vendor, a W-9 on file, and a clean split between card and non-card payments.

ProAxis bookkeeping codes contractor payments by vendor through the year, so the January list comes out of the books instead of a shoebox. Owners with W-2 staff can pair it with ProAxis payroll. Every business is different, and nothing here promises any outcome.

This article is general information for business owners who pay contractors. It is not tax advice and does not create a CPA-client relationship. Figures are current as of October 3, 2026 and sourced to Public Law 119-21, the IRS, and the NJ Division of Taxation.

Rules apply differently to each situation, and results vary. Confirm your specifics with a licensed CPA before you act.