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USAINFORMATION REPORTING
Form 1099 for 2026 payments: the new $2,000 threshold
For payments made in 2026, the Form 1099-NEC reporting threshold rises from $600 to $2,000. Businesses should update vendor files and payables systems now, before the January 2027 filing season.
By the True CPA Tax TeamNovember 4, 20262 min read
The One Big Beautiful Bill Act changed several information-reporting thresholds. The 2026 calendar year is the first one affected for Forms 1099-NEC and 1099-MISC. For third-party payment platforms, the Form 1099-K threshold reverted to $20,000 and 200 transactions. Latin American companies with US subsidiaries often pay many US contractors, so this matters for them too.
What changed
Form 1099-NEC: for payments made in 2026, the threshold is $2,000 (it was $600 for payments made before 2026).
After 2026: the IRS points to Publication 1099 for the inflation-adjusted amount. The 2027 figure has not been published yet.
Form 1099-MISC: thresholds vary by payment type. Check Publication 1099 for each box.
Form 1099-K: third-party settlement organizations need not file unless a payee’s payments exceed $20,000 and 200 transactions. The OBBBA restored this threshold retroactively.
What did not change
If you withheld federal income tax under backup withholding, you must file a 1099-NEC or 1099-MISC regardless of the amount.
Businesses with 10 or more information returns must file electronically.
Collecting a valid Form W-9 (US payees) or W-8 (foreign payees) is still the basis for correct reporting.
What to do now
01Update the threshold in your payables or ERP system for 2026 payments.
02Clean up vendor master data and request missing W-9 and W-8 forms.
03Flag payees subject to backup withholding: they still need a form.
04Reconcile payments made through card processors and platforms, which fall under Form 1099-K.
05Confirm 2027 filing deadlines in the IRS General Instructions for Certain Information Returns.
Watch out: the $2,000 figure applies to payments made in 2026. Do not apply it to 2025 forms still being corrected, and check Publication 1099 for 2027 amounts once released.
HOW TRUE CPA CAN HELPTrue CPA reviews vendor files and W-8/W-9 documentation, sets up 1099 reporting in your system and prepares and e-files information returns for US entities of Latin American groups.Talk to a specialist
Legal basisOne Big Beautiful Bill Act (Public Law 119-21); Internal Revenue Code sections 6041, 6041A, 6050W and 3406.SourcesIRS — Am I required to file a Form 1099 or other information return?IRS — FAQs on Form 1099-K threshold under the OBBB; dollar limit reverts to $20,000 (IR-2025-107)IRS Internal Revenue Bulletin 2026-42 (Notice 2026-58 obsoletes Form 1099-K transition notices)This content is for information only and does not replace an analysis of each specific case.
