Changes to certain 1099 forms for 2026: from $600 to $2,000

If your business hires independent workers or contractors, there is an IRS change for 2026 that you need to know. More importantly, you need to understand what it really means, because a quick reading could lead to a costly mistake.

For payments made in 2026, the IRS increased the minimum threshold from $600 to $2,000 for certain reportable payments on Forms 1099-NEC and 1099-MISC. This change does not mean every type of payment included on those forms has the same threshold.

In practice, some smaller contractor payments may no longer require a Form 1099-NEC or 1099-MISC under this specific change.

Not every Form 1099 follows the same rule. Form 1099-K has separate requirements.

For third-party settlement organizations, known as TPSOs, the current federal Form 1099-K threshold is more than $20,000 and more than 200 transactions. Payment card transactions follow different rules.

That is why it is important not to assume that every Form 1099 changed in the same way.

No longer having to issue a Form 1099-NEC or 1099-MISC for certain payments does not mean that money stops mattering.

For the person receiving the payment, the income is still reportable. Expenses must still be recorded, contractor payments must remain organized, and your books should reflect what actually happened in your business.

One of the most costly mistakes is to stop recording payments because a Form 1099 is no longer required. At year-end, that can lead to confusion, incomplete expenses, inaccurate reports, and poor decisions.

At NEXO Business Group, we believe financial clarity is the foundation of a stronger business.

That is why we help small businesses:

• Track contractor payments throughout the year.
• Classify expenses correctly.
• Keep QuickBooks up to date.
• Organize receipts and documents.
• Reach year-end with less stress and greater clarity.

Tax changes do not have to catch you by surprise. With clear records and consistent organization, your business can make better decisions all year long.

Every business is different. If you pay contractors, receive payments through platforms, accept payment cards, or are unsure how this change may affect your business, the best next step is to review your specific situation.

NEXO Business Group can help you understand your situation and keep your records organized. Schedule a consultation with NEXO.