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With the new rules, starting in 2026, that threshold increases to $2,000. Ensuring timely filing is a major component of 1099 compliance For tax year 2025, several important changes and clarifications affect who must file, what must be reported, and how forms must be delivered

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This article summarizes the key updates, compliance requirements, and practical considerations for businesses, tax professionals, and recipients. As of now, businesses must issue a form 1099 nec to any contractor, freelancer, or nonemployee they pay $600 or more in a calendar year. The 1099 nec threshold is $600 for tax year 2025, but it will increase to $2,000 beginning in tax year 2026 under new irs rules

What is the current 1099 nec threshold