Form 1099-NEC for 2026 payments

What changed for 2026 payments?

The reporting threshold rose from $600 to $2,000 for payments made after December 31, 2025 (IRS Publication 1099 (2026), What’s New: Increase in threshold for requiring filing of certain information returns and backup withholding). The IRS instructions add that the amount may be adjusted for inflation in later years (Instructions for Forms 1099-MISC and 1099-NEC, Rev. December 2026).

When is it due?

February 1, 2027 for 2026 payments, to the IRS and to recipients. The rule: “Section 6071(c) requires you to file Form 1099-NEC on or before January 31, using either paper or electronic filing procedures. You are required to furnish the payee statements and file with the IRS by January 31.” (IRS Instructions for Forms 1099-MISC and 1099-NEC (Rev. 4/2025), pp. 1, 9). January 31, 2027 is a Sunday, so the date moves to the next business day.

Which payments are left out?

Payments by card and through third-party networks are reported by the payment settlement entity instead. The IRS wording: “Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC or Form 1099-NEC. Some payments do not have to be reported on Form 1099-NEC, although they may be taxable to the recipient. Payments for which a Form 1099-NEC is not required include all of the following. • Generally, payments to a corporation (including a limited liability company (LLC) that is treated as a C or S corporation). However, see Reportable payments to corporations, earlier. The following payments made to corporations must generally be reported on Form 1099-NEC. • Attorneys' fees reported in box 1. • Payments by a federal executive agency for services (vendors) reported in box 1. 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.” (IRS Instructions for Forms 1099-MISC and 1099-NEC (Rev. 4/2025), pp. 1, 7–8). Whether a particular payee needs a form also depends on facts your books do not hold, such as the payee's status on Form W-9 and what the payment was for.

What does Nella show?

A 1099-NEC review list for the year, built from your accounting data, for you and your accountant to check. Nella never decides that a form is due.

• QuickBooks: every vendor paid in the year, from payments rather than unpaid bills; the total paid other than by card, with card payments shown separately; and whether QuickBooks marks the vendor for 1099. A vendor is listed when it is marked, or when its non-card payments reach the threshold for that year. An unmarked vendor over the threshold is listed and flagged.
• Xero: Xero's own 1099-NEC report, which lists the contacts the business has set up for 1099.

Nella provides financial information and education, not accounting or tax advice. Facts for tax year 2026, taken from the sources linked on this page. Created by the accountants at AccTek Ltd — an ICPA and AIA member firm.