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2026 Form 1099 Changes
New Thresholds, Reporting Requirements, and Filing Rules
The One Big Beautiful Bill Act (OBBBA) introduces significant Form 1099 changes for the 2026 tax year, including
higher reporting thresholds, new digital asset reporting rules, and new tip and overtime boxes.
Charles Hardy | Last updated August 19, 2026
AT A GLANCE
Form 1099 Changes Across the Reporting Series
Form 1099 changes are largely driven by new legislation and expanded digital asset reporting,
with a few additional 1099 requirements for specific forms.
IRIS replaces FIRE
The FIRE system retires at the end of 2026. IRIS becomes the only system for e-filing 1099s starting with the 2027 season, updating 1099 filing requirements for every FIRE filer, who will need an IRIS account and TCC in place beforehand.
One Big Beautiful Bill Act
OBBBA is the legislation behind the higher NEC/MISC threshold, the restored 1099-K threshold, and the new tip and overtime reporting fields, marking one of the biggest updates to 1099 regulations in years.
1099 threshold changes
Forms 1099-NEC and 1099-MISC move from a $600 to a $2,000 1099 threshold, while the Form 1099-K threshold is restored to $20,000 and 200 transactions.
Get timely notifications about tax deadlines and IRS updates.
Quick Reference for Form 1099 Changes
| Form | Key Changes | Deadline |
|---|---|---|
| 1099-NEC |
|
IRS & Recipient Copy Deadline: Effective: Payments made in 2026 |
| 1099-MISC |
|
IRS Deadline: Mar 31, 2027 Recipient Copy Deadline: Feb 01, 2027 Effective: Payments made in 2026 |
| 1099-K |
|
IRS Deadline: Mar 31, 2027 Recipient Copy Deadline: Feb 01, 2027 Effective: Transactions made in 2026 |
| 1099-DA |
|
IRS Deadline: Mar 31, 2027 Recipient Copy Deadline: Feb 16, 2027 Effective: Sales on/after Jan 1, 2026 |
| 1099-R |
|
IRS Deadline: Mar 31, 2027 Recipient Copy Deadline: Feb 01, 2027 Effective: Distributions made in 2026 |
| 1099-G |
|
IRS Deadline: Mar 31, 2027 Recipient Copy Deadline: Feb 01, 2027 Effective: Payments made in 2026 |
| 1099-S |
|
IRS Deadline: Mar 31, 2027 Recipient Copy Deadline: Feb 16, 2027 Effective: Transactions made in 2026 |
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Full Breakdown
Reporting Requirements for Each 1099 Form Type
Explore 2026 1099 requirements, form by form, in one place. Each section consolidates all updates,
from new boxes and reporting thresholds to instruction revisions and 1099 reporting requirements.
Form 1099-NEC (Nonemployee compensation)
- Reporting threshold rises from $600 to $2,000 for payments made on or after
January 1, 2026 - Nonemployee compensation, previously reported in box 1, now appears in box 1a
- Three new boxes added: box 1b for cash tips, box 1c for a Treasury Tipped Occupation Code, and box 1d for overtime compensation
- Box 2 (direct sales checkbox) and box 4 (federal income tax withheld) are renumbered to accommodate the new boxes
- Excess golden parachute payments are now reported on this form. They were previously reported on Form 1099-MISC and now belong on box 3
- Payer and recipient address fields are split into individual entry boxes
The higher 1099 threshold means fewer low-dollar contractor payments will require a Form 1099-NEC. However, businesses that e-file 1099-NEC forms for tipped or overtime-eligible nonemployees must capture and report additional information they may not have tracked before under the new 1099 reporting requirements.
FILING DEADLINE
Feb 01, 2027 (IRS & Recipient Copy)
EFFECTIVE FOR
Payments made in 2026
Note: The $2,000 threshold applies to attorney fees in box 1a, but gross proceeds paid to an attorney (reported on Form 1099-MISC) remain subject to the older $600 threshold
Form 1099-MISC (Miscellaneous information)
- $2,000 threshold applies to most payment types, including rents, prizes and other income, medical
and health care payments, crop insurance proceeds, section 409A deferrals, and nonqualified
deferred compensation - Some boxes keep their existing thresholds: Royalties (box 2) remain at $10, gross proceeds paid to an attorney (box 10) remain at $600, and fish purchased for resale (box 11) remain at $600
- Three new boxes added between box 12 and box 15: box 13a for cash tips, box 13b for a Treasury Tipped Occupation Code, and box 14 for overtime compensation
- Golden parachute payments have been removed from this form entirely, having moved to Form 1099-NEC box 3.
- Address fields split into individual entry boxes, consistent with Form 1099-NEC
- Backup withholding continues to apply regardless of dollar amount whenever a valid TIN hasn't
been furnished
Filers who use Form 1099-MISC should review the updated reporting rules before they
e-file 1099-MISC to confirm which payments now fall under the new 1099 threshold, which remain at their original thresholds, and which have moved to a different form altogether.
FILING DEADLINE
Mar 31, 2027 (IRS)
Feb 01, 2027 (Recipient Copy)
EFFECTIVE FOR
Payments made in 2026
Note: If amounts are reported in
box 8 (substitute payments) or box 10 (gross proceeds paid to an attorney), the recipient statement is due earlier, by February 15, 2027.
Form 1099-K (Payment card & third-party network transactions)
- New fields added for reporting cash tips and the applicable Treasury Tipped Occupation Code, aligning Form 1099-K with the tip-reporting changes on Forms
1099-NEC and
1099-MISC - Federal 1099 requirements for third-party settlement organizations keep the threshold at more than $20,000 and more than 200 transactions
- This reverses a previously scheduled reduction to $600, which had been set to take effect before the One Big Beautiful Bill Act reversed course
Payment settlement entities serving tipped workers, including delivery and rideshare platforms, need systems in place to capture and report tip detail that flows through card and app-based payments under the new 1099 rules. Businesses that file 1099-K should also update their systems for the restored $20,000/200-transaction reporting threshold if they had previously prepared for a lower threshold.
FILING DEADLINE
Mar 31, 2027 (IRS)
Feb 01, 2027 (Recipient Copy)
EFFECTIVE FOR
Transactions made in 2026
Form 1099-DA (Digital asset proceeds)
- Beginning with tax year 2026, brokers must report cost basis for covered digital assets, ending the transition relief that allowed gross-proceeds-only reporting in 2025
- Instructions clarify the distinction between covered and noncovered digital assets, which determines whether basis reporting is required for a given sale
- New de minimis exceptions apply: sales through a digital asset payment processor of $600 or less, qualifying stablecoin sales of $10,000 or less, and specified NFT sales of $600 or less do not need to be reported
This is the most significant change for businesses that file 1099-DA since the form was introduced. Brokers that don't correctly classify covered versus noncovered securities are exposed to penalties for inaccurate basis reporting. Form 1099-DA also remains outside the Combined Federal/State Filing Program, so state-level filing may need to happen separately from the federal return, one of the more nuanced 1099 reporting requirements to track
this cycle.
FILING DEADLINE
Mar 31, 2027 (IRS)
Feb 16, 2027 (Recipient Copy)
EFFECTIVE FOR
Sales on or after Jan 1, 2026
Form 1099-R (Distributions from retirement plans)
- Box 7 is separated into four boxes: 7a for the distribution code, 7b for a traditional IRA, SEP, or SIMPLE distribution, 7c for a Trump Account distribution, and 7d for earnings attributable to excess Trump Account contributions
- Box 8, previously a single "Other" box, is formalized into box 8a (dollar amount) and
box 8b (associated percentage) — a labeling change rather than a change in
what's reported - For tax year 2026, reporting the actuarial value of an annuitized annuity contract in
box 8a is optional, and issuers aren't required to report year-end value for
annuitized contracts
Retirement plan administrators, IRA custodians, and insurance companies issuing annuity distributions that file 1099-R need updated systems to correctly flag distribution types under the
Form 1099-R box 7 structure, particularly as Trump Accounts come online for the first time as part of the broader 1099 requirements update for tax year 2026.
FILING DEADLINE
Mar 31, 2027 (IRS)
Feb 01, 2027 (Recipient Copy)
EFFECTIVE FOR
Distributions made in 2026
Form 1099-G (Certain government payments)
- Form 1099-G includes a new box 10 added for family leave benefits, allowing government agencies to report payments under state paid family and medical leave programs, consistent with Revenue Ruling 2025-4
- This addition pushes the existing state information boxes down: what were boxes 10a, 10b, and 11 (state abbreviation, state identification number, and state tax withheld) are now boxes 11a, 11b, and 12
- Address fields are split into individual entry boxes
Government agencies administering paid family and medical leave programs that file 1099-G need to report these benefits using the new box 10 rather than folding them into an existing category. Any filer or software system that maps fields by box number, rather than by label, needs to account for the downstream renumbering of the state information boxes as part of these Form 1099 changes.
FILING DEADLINE
Mar 31, 2027 (IRS)
Feb 01, 2027 (Recipient Copy)
EFFECTIVE FOR
Payments made in 2026
Form 1099-S (Proceeds from real estate transactions)
- Instructions clarify that certain real estate transactions involving digital assets must be reported on Form 1099-S beginning with tax year 2026
- Extends the IRS's digital asset reporting framework beyond broker transactions and into real estate closings
Closing agents and real estate reporting entities that e-file 1099-S should review whether any transactions they handle involve digital assets as part of the consideration, and confirm those transactions are captured under the updated 1099 reporting requirements.
FILING DEADLINE
Mar 31, 2027 (IRS)
Feb 16, 2027 (Recipient Copy)
EFFECTIVE FOR
Transactions made in 2026
Form 1099-NEC (Nonemployee compensation)
- Reporting threshold rises from $600 to $2,000 for payments made on or after January 1, 2026
- Nonemployee compensation, previously reported in box 1, now appears in box 1a
- Three new boxes added: box 1b for cash tips, box 1c for a Treasury Tipped Occupation Code, and box 1d for overtime compensation
- Box 2 (direct sales checkbox) and box 4 (federal income tax withheld) are renumbered to accommodate the new boxes
- Excess golden parachute payments are now reported on this form. They were previously reported on Form 1099-MISC and now belong on box 3.
- Payer and recipient address fields are split into individual entry boxes
The higher 1099 threshold means fewer low-dollar contractor payments will require a Form 1099-NEC. However, businesses that e-file 1099-NEC forms for tipped or overtime-eligible nonemployees must capture and report additional information they may not have tracked before under the new 1099 reporting requirements.
FILING DEADLINE
Feb 01, 2027 (IRS & Recipient Copy)
EFFECTIVE FOR
Payments made in 2026
Note: The $2,000 threshold applies to attorney fees in box 1a, but gross proceeds paid to an attorney (reported on Form 1099-MISC) remain subject to the older $600 threshold
Form 1099-MISC (Miscellaneous information)
- $2,000 threshold applies to most payment types, including rents, prizes and other income, medical and health care payments, crop insurance proceeds, section 409A deferrals, and nonqualified deferred compensation
- Some boxes keep their existing thresholds: Royalties (box 2) remain at $10, gross proceeds paid to an attorney (box 10) remain at $600, and fish purchased for resale (box 11) remain at $600
- Three new boxes added between box 12 and box 15: box 13a for cash tips, box 13b for a Treasury Tipped Occupation Code, and box 14 for overtime compensation
- Golden parachute payments have been removed from this form entirely, having moved to Form 1099-NEC box 3.
- Address fields split into individual entry boxes, consistent with Form 1099-NEC
- Backup withholding continues to apply regardless of dollar amount whenever a valid TIN hasn't been furnished
Filers who use Form 1099-MISC should review the updated reporting rules before they e-file 1099-MISC to confirm which payments now fall under the new 1099 threshold, which remain at their original thresholds, and which have moved to a different form altogether.
FILING DEADLINE
Mar 31, 2027 (IRS)
Feb 01, 2027 (Recipient Copy)
EFFECTIVE FOR
Payments made in 2026
Note: If amounts are reported in box 8 (substitute payments) or box 10 (gross proceeds paid to an attorney), the recipient statement is due earlier, by February 15, 2027.
Form 1099-K (Payment card & third-party network transactions)
- New fields added for reporting cash tips and the applicable Treasury Tipped Occupation Code, aligning Form 1099-K with the tip-reporting changes on Forms 1099-NEC and 1099-MISC
- Federal 1099 requirements for third-party settlement organizations keep the threshold at more than $20,000 and more than 200 transactions
- This reverses a previously scheduled reduction to $600, which had been set to take effect before the One Big Beautiful Bill Act reversed course
Payment settlement entities serving tipped workers, including delivery and rideshare platforms, need systems in place to capture and report tip detail that flows through card and app-based payments under the new 1099 rules. Businesses that file 1099-K should also update their systems for the restored $20,000/200-transaction reporting threshold if they had previously prepared for a lower threshold.
FILING DEADLINE
Mar 31, 2027 (IRS)
Feb 01, 2027 (Recipient Copy)
EFFECTIVE FOR
Transactions made in 2026
Form 1099-DA (Digital asset proceeds)
- Beginning with tax year 2026, brokers must report cost basis for covered digital assets, ending the transition relief that allowed gross-proceeds-only reporting in 2025
- Instructions clarify the distinction between covered and noncovered digital assets, which determines whether basis reporting is required for a given sale
- New de minimis exceptions apply: sales through a digital asset payment processor of $600 or less, qualifying stablecoin sales of $10,000 or less, and specified NFT sales of $600 or less do not need to be reported
This is the most significant change for businesses that file 1099-DA since the form was introduced. Brokers that don't correctly classify covered versus noncovered securities are exposed to penalties for inaccurate basis reporting. Form 1099-DA also remains outside the Combined Federal/State Filing Program, so state-level filing may need to happen separately from the federal return, one of the more nuanced 1099 reporting requirements to track this cycle.
FILING DEADLINE
Mar 31, 2027 (IRS)
Feb 16, 2027 (Recipient Copy)
EFFECTIVE FOR
Sales on or after Jan 1, 2026
Form 1099-R (Distributions from retirement plans)
- Box 7 is separated into four boxes: 7a for the distribution code, 7b for a traditional IRA, SEP, or SIMPLE distribution, 7c for a Trump Account distribution, and 7d for earnings attributable to excess Trump Account contributions
- Box 8, previously a single "Other" box, is formalized into box 8a (dollar amount) and box 8b (associated percentage) — a labeling change rather than a change in what's reported
- For tax year 2026, reporting the actuarial value of an annuitized annuity contract in box 8a is optional, and issuers aren't required to report year-end value for annuitized contracts
Retirement plan administrators, IRA custodians, and insurance companies issuing annuity distributions that file 1099-R need updated systems to correctly flag distribution types under the Form 1099-R box 7 structure, particularly as Trump Accounts come online for the first time as part of the broader 1099 requirements update for tax year 2026.
FILING DEADLINE
Mar 31, 2027 (IRS)
Feb 01, 2027 (Recipient Copy)
EFFECTIVE FOR
Distributions made in 2026
Form 1099-G (Certain government payments)
- Form 1099-G includes a new box 10 added for family leave benefits, allowing government agencies to report payments under state paid family and medical leave programs, consistent with Revenue Ruling 2025-4
- This addition pushes the existing state information boxes down: what were boxes 10a, 10b, and 11 (state abbreviation, state identification number, and state tax withheld) are now boxes 11a, 11b, and 12
- Address fields are split into individual entry boxes
Government agencies administering paid family and medical leave programs that file 1099-G need to report these benefits using the new box 10 rather than folding them into an existing category. Any filer or software system that maps fields by box number, rather than by label, needs to account for the downstream renumbering of the state information boxes as part of these Form 1099 changes.
FILING DEADLINE
Mar 31, 2027 (IRS)
Feb 2, 2027 (Recipient Copy)
EFFECTIVE FOR
Payments made in 2026
Form 1099-S (Proceeds from real estate transactions)
- Instructions clarify that certain real estate transactions involving digital assets must be reported on Form 1099-S beginning with tax year 2026
- Extends the IRS's digital asset reporting framework beyond broker transactions and into real estate closings
Closing agents and real estate reporting entities that e-file 1099-S should review whether any transactions they handle involve digital assets as part of the consideration, and confirm those transactions are captured under the updated 1099 reporting requirements.
FILING DEADLINE
Mar 31, 2027 (IRS)
Feb 16, 2027 (Recipient Copy)
EFFECTIVE FOR
Transactions made in 2026
QUICK SELF-CHECK
Impact on Your 1099 Reporting
A few quick checks can help identify which of these form 1099 changes and
1099 reporting requirements above are worth a closer look.
Contractor & Freelancer Payments
Do you pay contractors, freelancers, or other nonemployees? The higher 1099 threshold of $2,000 on Form 1099-NEC may change how many forms you file this year, though backup withholding and TIN requirements still apply to every payment that crosses the line.
Cash Tips & Overtime Reporting
Do you process payments involving cash tips or overtime pay? New fields on Forms 1099-NEC, 1099-MISC, and 1099-K reflect updated 1099 requirements that your reporting systems will need to support.
Digital Asset Transactions
Do you broker or facilitate digital asset sales? Cost basis reporting is now mandatory on Form 1099-DA, and misclassifying covered versus noncovered assets carries real penalty exposure under the new 1099 rules.
Retirement & IRA Distributions
Do you administer retirement plans, IRAs, or annuity distributions? The restructured Form 1099-R box 7 affects how every distribution gets coded.
Frequently Asked Questions
A draft is an early, unofficial preview the IRS releases so filers and software providers can prepare for upcoming 1099 rules. Box numbers, instructions, and entire sections can still change before a form is finalized, so draft forms should never be filed with the IRS or furnished to recipients as final.
No. Draft forms are marked as drafts specifically because they haven't been approved for filing. Filing a draft version, or relying on draft instructions as final, can result in rejected returns or incorrect reporting.
The FIRE system retires at the end of 2026. Any filer who has used FIRE for Form 1099 filing will need an IRIS account and Transmitter Control Code in place before the 2027 filing season, since IRIS becomes the only electronic filing system for information returns going forward. TCC applications typically take about 45 business days to process.
For 1099 filers specifically, the One Big Beautiful Bill Act raises the Form 1099-NEC and Form 1099-MISC reporting threshold from $600 to $2,000 and restores the Form 1099-K reporting threshold to more than $20,000 and more than 200 transactions, reversing a previously scheduled reduction to $600. The law also introduces new tip and overtime reporting requirements reflected in the updated 1099-NEC, 1099-MISC, and 1099-K boxes. Its broader tax provisions extend beyond information reporting and are outside the scope of this page.
No! The requirement to e-file applies to any filer submitting 10 or more information returns in aggregate, and that threshold itself is unchanged. What is changing is the filing system: the FIRE system retires at the end of 2026, making IRIS the only platform for electronically filing 1099s beginning with the 2027 season.
Yes. The 1099 threshold rises from $600 to $2,000 for nonemployee compensation payments made on or after January 1, 2026.
The $2,000 threshold applies to most payment types; three new boxes are added for cash tips, a Treasury Tipped Occupation Code, and overtime compensation, and golden parachute payments have been removed from this form and moved to Form 1099-NEC.
No. Royalties (box 2) remain at $10, and gross proceeds paid to an attorney (box 10) and fish purchased for resale (box 11) remain at $600. Only certain payment types move to the $2,000 threshold.
More than $20,000 and more than 200 transactions. This restores the 1099 threshold that had been scheduled to drop to $600.
Yes. Brokers must report cost basis for covered digital assets starting with tax year 2026, ending the transition relief that previously allowed gross-proceeds-only reporting.
Box 7 is split into four boxes: 7a for the distribution code, 7b for traditional IRA, SEP, or SIMPLE distributions, 7c for Trump Account distributions, and 7d for earnings attributable to excess Trump Account contributions.
A new box 10 has been added for government agencies to report payments made under state paid family and medical leave programs, consistent with Revenue Ruling 2025-4.
The instructions clarify that certain real estate transactions involving digital assets must now be reported on Form 1099-S, beginning with tax year 2026.
