Two 1099 Rules Just Changed — What to Fix Before January
The 1099-NEC and 1099-MISC threshold moves from $600 to $2,000 for 2026 payments, but you still need W-9s and correctly coded contractor payments.
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What happened to the $600 rule?
the $600 1099 rule is gone. Before you celebrate, one thing in your books still has to change.
What are the new thresholds?
For payments made during 2026, the filing threshold for 1099 NEC and 1099 MISC forms moves from $600 to $2,000. Those forms are filed in early 2027. The 1099 K threshold is $20,000 and 200 transactions. But these filing changes do not remove the bookkeeping work behind the forms.
What bookkeeping work still has to happen?
You still need to track contractor payments. You still need to collect W-9s. And contractor payments still need to be coded correctly. The change affects what gets filed, not what gets recorded. If the vendor information in your books is incomplete, a higher filing threshold does not fix that. One practical step to take now
What can you do now?
to review your vendor list and identify anyone who is missing a W9. That gives you time to request the information before the filing process begins instead of trying to solve every missing detail in January. Fewer forms do not mean fewer records. Not sure your contractor payments are coded right? That's a 15 minute look.
Need help getting your books cleaned up? Call (310) 800-4494 or send us a note.