1099 Changes: What They Mean for Your Business

You may have heard about changes to 1099 reporting requirements. Here’s what to know as you keep your books in order for 2026.

Pay independent contractors? For payments made in 2026, the 1099-NEC reporting threshold generally increases from $600 to $2,000 per person or business for the year.

Have rent or other miscellaneous payments? Certain 1099-MISC thresholds also increase to $2,000 in 2026, including rents, prizes, and awards. But not every threshold is changing. Royalties still have a $10 threshold, and gross proceeds paid to attorneys still have a $600 threshold. The new $2,000 thresholds will be indexed for inflation beginning in 2027. IRS reporting guidance

Receive payments through apps or online marketplaces? The federal 1099-K reporting threshold is back to more than $20,000 AND more than 200 transactions through a third-party payment platform during the year. Both conditions must be met. Payment card transactions have no minimum reporting threshold, and platforms may still send you a form below those amounts. IRS 1099-K guidance

One thing to keep in mind: not receiving a 1099 doesn’t mean the income is tax-free. You still need to report taxable income, whether a form arrives or not. That’s one reason keeping accurate books throughout the year matters! IRS income reporting reminder

Here at Meticulous Bookkeeping, we can help categorize your income and expenses appropriately and keep your records organized so your books are ready for your tax preparer. We focus on the bookkeeping side, leaving tax preparation and tax advice to your tax professional.

Need help getting things in order? Let’s get your books ready before tax season rolls around!