1099-NEC threshold for 2026: $2,000
The form instructions revised in December 2026 put the nonemployee compensation figure at $2,000. For 2025 payments it was $600.
| Payments made in | Form filed in early | Figure for box 1 / 1a | Where it says so |
|---|---|---|---|
| 2025 | 2026 | $600 or more | General Instructions for Certain Information Returns (2025), Guide to Information Returns, row 1099-NEC: "$600 or more" |
| 2026 | 2027 | $2,000 or more | Instructions for Forms 1099-MISC and 1099-NEC (revised 12/2026), box 1a: "Enter nonemployee compensation (NEC) of $2,000 or more." |
| 2027 and later | 2028 and later | May change | Same instructions: the figure "may be adjusted for inflation beginning in calendar year 2027" |
The full sentence in the December 2026 instructions: "For tax years beginning after 2025, the minimum threshold amount for reporting certain payments required to be reported on certain information returns and/or perform backup withholding on those payments increased to $2,000 and may be adjusted for inflation beginning in calendar year 2027."
Two cases where the amount does not decide it
| Case | What the instructions say |
|---|---|
| Backup withholding | "You must also file Form 1099-NEC for each person from whom you have withheld any federal income tax (report in box 4) under the backup withholding rules regardless of the amount of the payment." |
| Direct sales for resale (box 2) | The box is checked for sales "totaling $5,000 or more"; that figure did not change |
A list for 2026 is often shorter than last year's because recipients between $600 and $1,999.99 drop out. Perfrow does not remove anyone: it formats the rows you give it. A state may still want a form below the federal figure, so check your state's rule before deleting rows.
This page repeats what the IRS documents say and does the arithmetic. It is not advice on your own filing. Ask the IRS or a tax professional about your case.
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Open the 1099-NEC CSV fixerQuestions
- What is the 1099-NEC threshold for 2026?
- $2,000. The instructions revised in December 2026 say to enter nonemployee compensation of $2,000 or more, for tax years beginning after 2025.
- Is the $600 rule gone?
- For nonemployee compensation paid in 2026, the IRS instructions give $2,000. $600 was the figure for payments made in 2025 and earlier.
- Will the threshold change again?
- The instructions say it may be adjusted for inflation beginning in calendar year 2027.
Related
- 1099-NEC boxes 1a, 1b, 1c and 1d
- Do you have to e-file? Count to 10
- FIRE to IRIS: the dates and numbers
Other answers: Late penalty calculator · 10-return e-file rule · Due date · Splitting names · Vendor list template · CF/SF states · Forms with CSV guidelines · TCC timing · Boxes 1a to 1d · All 54 columns · Required fields · Character limits · State codes · 250-record limit · Why files get rejected · Scientific notation · ZIP code format · Date format · Line breaks · Extra spaces · Periods and # · $0.00 cells · Y/N check boxes · Tax year · Error types · Headers do not match · From QuickBooks · TIN format · Key dates