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1099 Reporting Requirements for 2026 - An Overview
Updated on November 17, 2025 - 11:00 AM by Admin, TaxBandits
The series of 1099 forms is the information return that the Internal Revenue Service uses to track income paid to independent contractors, non-employees, and other payees. For the 2025 tax year, you should be aware of key changes that affect how and when you must file these information returns.
Table of Contents:
1. Updates on 1099 Reporting Requirements for the
2025 Tax year
The IRS has updated several forms in the 1099 series for the 2025 tax year to improve reporting accuracy, track new types of income such as digital assets, and clarify instructions. You need to understand these changes to ensure compliance and accurate reporting.
| Form | Key Changes for 2025 Tax Year |
|---|---|
|
1099-NEC (Nonemployee Compensation) |
Box 3 is now used for reporting excess golden parachute payments. Nonemployee compensation continues to be the main focus of the form. |
|
1099-MISC (Miscellaneous Income) |
Box 14, previously used for excess golden parachute payments, is now reserved for future use. These payments should not be reported on 1099-MISC. |
|
1099-K (Payment Card & Third-Party Network Transactions) |
The previously planned lower thresholds ($2,500 for 2025 and $600 for 2026) were rolled back. The reporting threshold for 2025 remains $20,000 in payments and at least 200 transactions. |
|
1099-Q (Qualified Education Program Distributions) |
Boxes 4a and 4b now specify transfer types (trustee-to-trustee transfers or direct transfers to Roth IRAs). Boxes 5a,5b, and 5c identify the source of the distribution (private QTP, state QTP, or Coverdell ESA). |
|
1099-R (Retirement & Pension Distributions) |
New Box 7 codes added for Qualified Charitable Distributions (QCDs), distinguishing between non-inherited IRA, inherited IRA, and traditional IRA assets without FMV. |
|
1099-S (Real Estate Proceeds) |
Filer’s and transferor’s addresses are now separate. Box 2 is split into total, cash, and digital asset gross proceeds. A new section (boxes 8a–8d) has been added for digital asset details. Checkboxes reorganized, and box 5 is reserved. |
|
1099-G (Certain Government Payments) |
Added Box 10 for state-paid family and medical leave benefits. Payer and recipient addresses are now separate, and state-related boxes renumbered. |
|
1099-B (Broker & Barter Exchange Transactions) |
Payer and recipient details are now entered individually (name, address, suite, city, state, country, ZIP code, and TIN) for improved clarity and accuracy. |
|
1099-DA (Digital Asset Proceeds) |
New form for reporting digital asset transactions in 2025. Brokers report each sale; cost basis reporting begins in 2026. |
2. 2025 Deadlines for 1099 Reporting
Most 1099 forms follow standard deadlines for recipient and IRS filing, but some have earlier due dates. Knowing these deadlines helps you stay compliant and avoid penalties.
| Form | Recipient Copy Deadline | E-filing Deadline | Paper Filing Deadline |
|---|---|---|---|
|
Most 1099 Forms |
January 31 |
March 31 |
February 28 |
|
1099-NEC |
January 31 |
January 31 |
February 28 |
|
1099-MISC (Box 8 or 10) |
February 15 |
March 31 |
February 28 |
|
1099-S |
February 15 |
March 31 |
February 28 |
|
1099-B |
February 15 |
March 31 |
February 28 |
3. New 1099 Penalties for 2026
If you fail to file Form 1099 by the deadline, the IRS imposes penalties that vary based on the lateness of your return. Here are the penalties for late filing for the 2025 tax year:
- Filed within 30 days: $60 per form, with a maximum of $683,000 per year ($239,000 for small businesses).
- Filed after 30 days and before August 1: $130 per form, with a maximum of $2,049,000 per year ($683,000 for small businesses).
- Filed after August 1: $340 per form, with a maximum of $4,098,500 per year ($1,366,000 for small businesses).
- Intentional Disregard: $680 per form with no maximum limits.
4. Information Required to Report on Form 1099s
The information required to report on Form 1099s varies depending on the type of form and the nature of the payment. However, the following is some of the general information necessary to complete Form 1099.
- Payer's name and Tax Identification Number (TIN)
- Recipient's name and TIN
- Type of payment (e.g., non-employee compensation, rent, royalties)
- State Filing details
5. Meet Your 1099 Reporting Requirements with TaxBandits
E-filing your Form 1099 with TaxBandits is a breeze. Select the required forms, fill in the information, and transmit them seamlessly to the IRS and states. TaxBandits supports e-filing for various 1099 forms, providing features like bulk upload, TIN matching, and internal error checks for accurate and streamlined filing. Additionally, choose to distribute recipient copies via postal mail or e-delivery.
Beyond e-filing, TaxBandits offers a W-9 Manager for simplified W-9 information collection and management. Experience the convenience and efficiency of TaxBandits – get started today!
