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Fewer 1099s this January: the $2,000 threshold, explained

For payments made in 2026, US clients only have to send a Form 1099-NEC when they pay a freelancer $2,000 or more in the year, up from $600. The forms for 2026 go out in January 2027.

By · Published · 2 min read

What changed

The One Big Beautiful Bill Act raised the reporting threshold for Forms 1099-NEC and 1099-MISC from $600 to $2,000 for payments made after 2025. The IRS says the $2,000 figure will be adjusted for inflation from 2027. The same threshold now applies to backup withholding.

What it means for you

  • A client who paid you at least $600 but less than $2,000 in 2026 may not send a 1099 at all.
  • The income is still taxable. You report what you earned, form or no form.
  • With fewer forms arriving, your own records matter more: keep every payout, by client, in one place.

What to do now

Add up 2026 payments per client before January, so a missing 1099 doesn’t become missing income on your return. Ask a tax professional how this applies to you.

In Freeboard

Sources

Read on 6 November 2026.

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