Hired Help This Year? The 1099-NEC Threshold Is Now $2,000
A photographer hires a second shooter for a few weekends. A consultant pays a bookkeeper by the month. A landscaper brings in a subcontractor for one big job. At year end, all three ask the same question: do I have to send this person a tax form?
The answer depends on a threshold, and for payments made in 2026 the IRS number changed.
The number that changed
The IRS says that for payments made before 2026, the reporting threshold for Form 1099-NEC was $600. For payments made in 2026, it is $2,000. For payments after 2026, the IRS points to Publication 1099 for the inflation-adjusted amount.
Who needs to file
You generally file a 1099-NEC if, as part of your trade or business, you paid more than the threshold for services performed by someone who is not your employee. That includes parts and materials. It also covers payments to attorneys and other providers of legal services.
Who usually does not need one
- You are not engaged in a trade or business.
- The payee is an incorporated business, unless the payment is for medical or legal services.
- Your total payments to that person or unincorporated business stayed below the threshold for the year.
There is one more rule worth knowing: if you withheld federal income tax under backup withholding from someone, you file regardless of the amount. And if you have 10 or more information returns, the IRS says you must file them electronically.
A simple way to stay ready
- Keep a short list of everyone you paid for services this year, with a running total.
- Ask each new freelancer for their tax details before the first payment, not in January.
- Note whether each one is an individual or an incorporated business.
- Put a check in your calendar for early December, when you can still fix gaps.
The calendar part is something Edwin, a digital assistant, can handle: a reminder on the day you set and a weekly recap of what is coming up. He does not give tax advice, he always says he is an AI, and nothing goes out without your approval. For filing details and due dates, check the IRS instructions or ask your tax preparer.