Your guide to 1099 classifications, the new $2,000 threshold, new tip and overtime boxes, and deadlines for the 2026 filing season.
For payments made in 2026, the reporting threshold for Form 1099-NEC and most of Form 1099-MISC is $2,000, up from $600, and both forms have new boxes for cash tips, tipped occupation codes, and overtime.
Those two changes decide who gets a 1099 this year and what's on it. Reporting for 2026 year-end (filed in 2027) also brings the retirement of the IRS FIRE system and a January 31 deadline that falls on a Sunday.
Which 1099 do I file?
Quick answer
File Form 1099-NEC for services you paid a nonemployee $2,000 or more for in 2026. File Form 1099-MISC for rents, prizes, royalties, and other non-service payments. Payments made by credit card or through a payment app aren't yours to report, because the platform issues Form 1099-K.
What 1099 forms report
The 1099 series reports non-employee income: money paid to individuals or businesses that are not your employees. Common recipients include independent contractors, freelancers and consultants, landlords, attorneys, gig workers, and vendors paid outside payroll.
Three forms cause the most confusion:
| Form | Purpose | 2026 threshold | New for 2026 |
|---|---|---|---|
| 1099-NEC (IRS: About Form 1099-NEC) |
Nonemployee compensation for services | $2,000, up from $600 | Boxes 1a through 1d for tips and overtime; box 3 for excess golden parachute payments |
| 1099-MISC (IRS: About Form 1099-MISC) |
Rents, royalties, prizes, and other non-service payments | $2,000 for most boxes; $10 for royalties; $600 for attorney gross proceeds | Boxes 13a and 13b for tips; box 14 for overtime |
| 1099-K (IRS: About Form 1099-K) |
Third-party payment network transactions (PayPal, Venmo, Etsy, and others) | More than $20,000 and more than 200 transactions for third-party network payments | Boxes 1c and 1d for tips |
For a side-by-side look at the two forms payers file most, see What is the difference between Tax Forms 1099-NEC and 1099-MISC?
Form 1099-NEC (nonemployee compensation)
Use this form for payments to contractors, freelancers, consultants, gig workers paid directly rather than through a platform, attorneys for services, and vendors performing services.
You file Form 1099-NEC when all of the following are true:
- The recipient is not your employee
- The payment was for services
- You paid by cash, check, ACH, or direct invoice
- You paid $2,000 or more during the year (the threshold was $600 before 2026 and may be adjusted for inflation beginning in 2027)
- The payment was made in the course of your trade or business
If you withheld federal income tax under the backup withholding rules, you file regardless of the amount. (Instructions for Forms 1099-MISC and 1099-NEC)
What's reported where
- Box 1a: Total nonemployee compensation
- Box 1b: Cash tips (included in box 1a)
- Box 1c: Treasury Tipped Occupation Code, up to two
- Box 1d: Qualified overtime compensation (included in box 1a)
- Box 3: Excess golden parachute payments, which are no longer reported on Form 1099-MISC
- Box 4: Federal income tax withheld (backup withholding)
- Boxes 5 through 7: State information
1099-NEC vs. 1099-K
If you pay a contractor by credit card, debit card, PayPal, Venmo Business, Square, Stripe, Etsy, or a similar platform, you do not issue a 1099-NEC for those payments. The payment platform issues Form 1099-K if its thresholds are met.
Form 1099-MISC (miscellaneous income)
Form 1099-MISC covers non-service payments that aren't reported on other 1099 forms. You file it when you've paid a recipient:
- At least $10 in royalties (box 2) or substitute payments in lieu of dividends or tax-exempt interest (box 8)
- At least $600 in gross proceeds to an attorney (box 10) or in cash for fish purchased for resale (box 11)
- Any fishing boat proceeds (box 5)
- At least $2,000 in any of the following:
- Rents (box 1)
- Prizes and awards, including certain non-government grants (box 3)
- Other income payments (box 3)
- Cash from a notional principal contract to an individual, partnership, or estate (box 3)
- Medical and health care payments (box 6)
- Crop insurance proceeds (box 9)
- Section 409A deferrals (box 12)
- Nonqualified deferred compensation (box 15)
Backup withholding triggers a Form 1099-MISC regardless of the amount. (Instructions for Forms 1099-MISC and 1099-NEC)
What changed on the 2026 form
- Boxes 13a and 13b: Cash tips and Treasury Tipped Occupation Code (included in box 3)
- Box 14: Qualified overtime compensation (included in box 3)
- Excess golden parachute payments are reported on Form 1099-NEC, box 3, not on Form 1099-MISC
Form 1099-K (third-party payment networks)
A third-party settlement organization (TPSO) issues Form 1099-K when it processes payments for goods or services. Examples include PayPal, Venmo (business transactions), Square, Stripe, Etsy, eBay, Uber, Lyft, and DoorDash. If they process the payment, they report it.
What isn't reported on 1099-K
- Personal transfers
- Reimbursements between friends
- Selling personal items at a loss
- Shared expenses or split checks
(Instructions for Form 1099-K)
The 2026 threshold: OBBBA restores the original rule
For third-party network transactions, a TPSO files Form 1099-K only if both conditions apply:
- More than 200 transactions, AND
- More than $20,000 in gross payments
This replaces the $600 threshold that had been scheduled. (IR-2025-107, Oct 23, 2025) The 2026 form also adds box 1c for cash tips and box 1d for Treasury Tipped Occupation Codes. Some states set lower 1099-K thresholds, so confirm your state's rule.
Other 1099s your business may encounter
Beyond 1099-NEC, 1099-MISC, and 1099-K, many organizations issue additional 1099s for investment income, government payments, cooperative distributions, or real estate activity.
- 1099-B: Proceeds from broker and barter exchange transactions. (IRS: About Form 1099-B)
- 1099-C: Cancellation of debt of $600 or more after a triggering event, generally treated as income. (IRS: About Form 1099-C)
- 1099-DIV: Dividends and distributions paid to investors. (IRS: About Form 1099-DIV)
- 1099-G: Government payments such as unemployment compensation, state tax refunds, and agricultural subsidies. The 2026 form adds box 10 for family leave benefits paid by state paid family and medical leave programs. (IRS: About Form 1099-G)
- 1099-INT: Interest income, generally when a recipient earns at least $10. (IRS: About Form 1099-INT)
- 1099-PATR: Taxable distributions from cooperatives, typically at least $10. (IRS: About Form 1099-PATR)
- 1099-R: Distributions of $10 or more from retirement arrangements. (IRS: About Form 1099-R)
- 1099-S: Proceeds from certain real estate transactions. (IRS: About Form 1099-S)
The IRS 1099 series includes more than 20 form types, each with its own rules and thresholds. The list above covers the forms employers see most often. For the full set, see the IRS Information Returns overview.
Stay ahead of every deadline
Your 2027 compliance calendar
A month-by-month guide with all key federal payroll and tax deadlines, holidays, and monthly tips.
Bookmark Your Copy →Where and when to file Forms 1099
If you file 10 or more information returns of any type in a year, W-2s included, you must file them electronically. Our guide to who has to e-file and where covers the rules in full.
For tax year 2026, the IRS accepts electronic information returns through the Information Returns Intake System (IRIS). The older FIRE system is retiring: the last day to file through it is November 19, 2026, and after January 1, 2027, IRIS is the only IRS electronic filing system for these returns, including corrections. Filing through IRIS requires an IRIS Transmitter Control Code (TCC). Greenshades is an IRS-approved transmitter.
Key deadlines for 2026 year-end (filed in 2027)
February 1, 2027 (because January 31 is a Sunday)
- 1099-NEC: to recipients and the IRS
- 1099-MISC (with no data in box 8 or 10): to recipients
- 1099-DIV, 1099-C, 1099-INT, 1099-K, 1099-PATR, 1099-R: to recipients
February 16, 2027 (because February 15 is a federal holiday)
- 1099-MISC (with data in box 8 or 10): to recipients
- 1099-B, 1099-S: to recipients
March 1, 2027 (because February 28 is a Sunday)
Paper filing deadline for most information returns, including Form 1099-MISC. If you have 10 or more returns in total, paper isn't an option.
March 31, 2027
E-file deadline for most 1099 forms with the IRS, including 1099-MISC, 1099-DIV, 1099-C, 1099-K, 1099-PATR, 1099-R, 1099-B, 1099-INT, and 1099-S.
Filing corrections
Where you file a correction depends on how the original was filed:
- IRIS Application-to-Application (A2A): follow Pub 5718
- IRIS Taxpayer Portal: follow Pub 5717
- Paper: see part H of the current Pub 1099
- FIRE: closes November 19, 2026. After January 1, 2027, corrections go through IRIS.
Best practices: correct errors as soon as they're discovered, don't resend your entire file, keep payee identifiers consistent, and keep copies of every filing, original and corrected.
State filing requirements and the CF/SF program
State 1099 rules vary, and some states require separate filings. Many states participate in the Combined Federal/State Filing (CF/SF) Program. For participating states, the IRS forwards the information it receives electronically, so one filing covers both.
- Not all states participate
- Some participating states still require separate filings for state withholding
- Not every 1099 form is accepted by every state
Confirm your state's requirements and participation with its Department of Revenue.
How Greenshades handles 1099 filing
Greenshades Year-End Forms is built to reduce errors and keep employers current with changing IRS rules.
- Error validation checks before submission
- Automatic updates for form revisions
- Supports both IRIS and CF/SF filing
- Eliminates the need for businesses to maintain their own TCC
- Bulk import directly from payroll and accounting systems
That means less manual entry, fewer common mistakes, and on-time delivery of 1099s.
Note: This information is for informational purposes only and does not constitute formal tax, legal, or compliance advice. Always consult with qualified tax advisors, legal counsel, and your organization's internal teams for guidance specific to your situation. Additional regulations may apply. For the most accurate and up-to-date information, refer to official government resources and regulatory agencies.
