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2026 Form 1099 Changes
New Thresholds, Updated Boxes, 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.
By Charles Hardy | Last updated: September 05, 2026
AT A GLANCE
Form 1099 Changes Across the Series
Form 1099 updates for 2026 affect payment thresholds, form fields, digital asset transactions, retirement distributions,
government benefits, and the IRS e-file system. Here are the key changes to know:
IRIS replaces FIRE
FIRE will not accept current-year,
prior-year, or corrected information returns after it shuts down at the end of 2026. IRIS becomes the only intake system for the 2027 filing season, so existing FIRE users need an
IRIS TCC.
$2,000 threshold takes effect
The 1099 threshold increases to $2,000 for nonemployee compensation and many Form 1099-MISC payment types made in 2026. Several exceptions keep their existing amount.
One Big Beautiful Bill Act
OBBBA is the legislation behind the higher NEC/MISC threshold, the restored Form 1099-K threshold, and the new tip and overtime reporting fields, marking one of the biggest updates to 1099 regulations in years.
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Quick Reference for 2026 Form 1099 Changes
| Form | 2026 threshold | Key Changes | Deadline |
|---|---|---|---|
| 1099-NEC |
|
|
IRS and recipient: |
| 1099-MISC |
|
|
Recipient:
IRS e-file: |
| 1099-K |
|
|
Recipient:
IRS e-file: |
| 1099-DA |
|
|
Recipient:
IRS e-file: |
| 1099-R |
|
|
Recipient:
IRS e-file: |
| 1099-G |
|
|
Recipient:
IRS e-file: |
| 1099-S |
|
|
Recipient:
IRS e-file: |
Deadline note: Dates shown reflect weekend and federal-holiday adjustments for 2027. Paper-filed Forms 1099-MISC, 1099-K, 1099-DA, 1099-R, 1099-G, and
1099-S are generally due March 1, 2027. Certain Form 1099-MISC statements for boxes 8 or 10 are due
February 16, 2027.
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Full Breakdown
2026 Changes by Form 1099 Type
Review the 2026 Form 1099 changes by form type, including new thresholds, revised boxes, digital asset
updates, and filing dates. The details below are based on current IRS forms and instructions for tax year 2026.
Form 1099-NEC (Nonemployee compensation)
- The 1099 threshold increases from $600 to $2,000 for nonemployee compensation paid on or after January 1, 2026.
- Nonemployee compensation moves from box 1 to box 1a
- New box 1b reports cash tips, box 1c reports the Treasury Tipped Occupation Code (TTOC), and box 1d reports qualified overtime compensation.
- The direct sales checkbox and federal income tax withheld box are renumbered to box 2 and box 4.
- Excess golden parachute payments move from Form 1099-MISC to box 3 of Form
1099-NEC. - Payer and recipient address fields are separated into individual entry boxes.
A higher threshold means most businesses file fewer low-dollar contractor forms. But if any nonemployee payments include cash tips or overtime, you must capture that data before you e-file Form 1099-NEC, since boxes 1b through 1d didn't exist on last
year's form.
FILING DEADLINE
Feb 1, 2027 (IRS and recipient)
EFFECTIVE FOR
Payments made in 2026
Note: Attorney fees for services reported in box 1a use the $2,000 threshold. Gross proceeds paid to an attorney and reported on Form 1099-MISC box 10 remain subject to the $600 threshold. Backup withholding can require a form regardless of payment amount.
Form 1099-MISC (Miscellaneous information)
- A $2,000 threshold applies to rents, prizes and awards, other income, certain notional principal contract payments, medical and health care payments, crop insurance proceeds, section 409A deferrals, and nonqualified deferred compensation.
-
Existing exceptions remain: royalties and substitute payments stay at $10; gross proceeds paid to an attorney and cash fish purchases for resale stay at $600; fishing boat proceeds are reported at
any amount. - New box 13a reports cash tips, box 13b reports the TTOC, and box 14 reports qualified overtime compensation.
- Golden parachute payments are removed from Form 1099-MISC and move to Form 1099-NEC box 3.
- Payer and recipient address fields are separated into individual entry boxes.
- Backup withholding can require filing regardless of
payment amount.
The new threshold does not apply uniformly to every box. Filers should classify each payment first, then apply the amount tied to that payment type before they
e-file Form 1099-MISC. This prevents low-threshold payments, such as royalties or attorney gross proceeds, from being missed.
FILING DEADLINE
Mar 31, 2027 (IRS e-file)
Feb 1, 2027 (Recipient)
EFFECTIVE FOR
Payments made in 2026
Note: If amounts are reported in box 8 or box 10, the recipient statement is due February 16, 2027. Paper returns filed with the IRS are generally due March 1, 2027.
Form 1099-K (Payment card & third-party network transactions)
- New box 1c reports cash tips and box 1d reports the applicable Treasury Tipped Occupation Code.
- For third-party settlement organizations, the federal 1099 threshold remains more than $20,000 in payments and more than 200 transactions.
- The law reverses the previously scheduled lower threshold and restores the pre-ARPA standard.
- Payment-card transactions are reportable at all amounts; the $20,000 and 200-transaction test applies specifically to third-party network transactions.
Payment platforms, marketplaces, and other settlement entities must distinguish payment-card transactions from third-party network transactions when applying the threshold. Entities serving tipped payees must also capture tip amounts and TTOCs before they
file Form 1099-K.
FILING DEADLINE
Mar 31, 2027 (IRS e-file)
Feb 1, 2027 (Recipient)
EFFECTIVE FOR
Transactions made in 2026
Form 1099-DA (Digital asset proceeds from broker transactions)
- Brokers must report basis for covered digital assets acquired and sold through the same broker on or after January 1, 2026.
- The transition rule that generally allowed gross-proceeds-only reporting for 2025 sales no longer applies to covered 2026 transactions.
- Instructions distinguish covered from noncovered digital assets, which determines whether you must include basis.
- De minimis exceptions may apply to processor-of-digital-asset-payment sales of $600 or less, qualifying stablecoin sales of $10,000 or less under the optional method, and specified NFT sales of $600 or less under the optional method.
Brokers must accurately identify covered assets and retain acquisition data needed for basis. A transferred-in asset or an asset acquired before 2026 may be noncovered, so basis is not required in every case. Form 1099-DA also remains outside the Combined Federal/State Filing Program, which may create separate state filing steps when businesses file Form 1099-DA.
FILING DEADLINE
Mar 31, 2027 (IRS e-file)
Feb 16, 2027 (Recipient)
EFFECTIVE FOR
Sales made in 2026
Form 1099-R (Distributions from
retirement plans)
- Box 7 is restructured: box 7a contains distribution codes, box 7b is the IRA/SEP/SIMPLE checkbox, box 7c identifies a Trump Account, and box 7d reports earnings on distributed excess Trump Account contributions.
- The former box 8 amount and percentage fields are renumbered as box 8a and box 8b.
- For tax year 2026, an issuer may report the year-end actuarial value of an annuitized commercial annuity in box 8a, but is not required to do so.
- Payer and recipient address fields are separated into individual entry boxes.
Retirement plan administrators, IRA custodians, and insurers need updated field mappings for the revised
box 7 structure. The change affects how distribution type, IRA status, Trump Account status, and excess-contribution earnings are reported on
Form 1099-R.
FILING DEADLINE
Mar 31, 2027 (IRS e-file)
Feb 1, 2027 (Recipient)
EFFECTIVE FOR
Distributions made in 2026
Form 1099-G (Certain government payments)
- New box 10 reports family leave benefits paid under a governmental paid family and medical
leave program. - Former state information boxes 10a, 10b, and 11 are renumbered as boxes 11a, 11b,
and 12. - Payer and recipient address fields are separated into individual entry boxes.
- The threshold is $10 for state or local tax refunds and unemployment compensation, and generally $2,000 for reemployment trade adjustment assistance payments, taxable grants, and governmental paid family leave benefits.
Government agencies administering paid family and medical leave programs now have a dedicated box for these benefits. Systems that map data by box number must also account for the shifted state fields before agencies file Form 1099-G.
FILING DEADLINE
Mar 31, 2027 (IRS e-file)
Feb 1, 2027 (Recipient)
EFFECTIVE FOR
Payments made in 2026
Form 1099-S (Proceeds from real estate transactions)
- Beginning with tax year 2026, digital assets used in a sale or exchange of real estate are reflected on Form 1099-S.
- Box 2a shows total gross proceeds, box 2b shows cash gross proceeds, and new box 2c shows digital asset gross proceeds measured in U.S. dollars.
- The change extends the IRS digital asset framework into reportable real
estate closings.
Closing agents and other real estate filers should identify whether consideration includes digital assets and retain the U.S. dollar value needed for box 2c. Data-entry and import mappings must distinguish cash proceeds from digital asset proceeds when filers
e-file Form 1099-S.
FILING DEADLINE
Mar 31, 2027 (IRS e-file)
Feb 16, 2027 (Recipient)
EFFECTIVE FOR
Transactions made in 2026
Form 1099-NEC (Nonemployee compensation)
- The 1099 threshold increases from $600 to $2,000 for nonemployee compensation paid on or after January 1, 2026.
- Nonemployee compensation moves from box 1 to box 1a.
- New box 1b reports cash tips, box 1c reports the Treasury Tipped Occupation Code (TTOC), and box 1d reports qualified overtime compensation.
- The direct sales checkbox and federal income tax withheld box are renumbered to box 2 and box 4.
- Excess golden parachute payments move from Form 1099-MISC to box 3 of Form 1099-NEC.
- Payer and recipient address fields are separated into individual entry boxes.
A higher threshold means most businesses file fewer low-dollar contractor forms. But if any nonemployee payments include cash tips or overtime, you must capture that data before you e-file Form 1099-NEC, since boxes 1b through 1d didn't exist on last year's form.
FILING DEADLINE
Feb 1, 2027 (IRS and recipient)
EFFECTIVE FOR
Payments made in 2026
Note: Attorney fees for services reported in box 1a use the $2,000 threshold. Gross proceeds paid to an attorney and reported on Form 1099-MISC box 10 remain subject to the $600 threshold. Backup withholding can require a form regardless of payment amount.
Form 1099-MISC (Miscellaneous information)
- A $2,000 threshold applies to rents, prizes and awards, other income, certain notional principal contract payments, medical and health care payments, crop insurance proceeds, section 409A deferrals, and nonqualified deferred compensation.
- Existing exceptions remain: royalties and substitute payments stay at $10; gross proceeds paid to an attorney and cash fish purchases for resale stay at $600; fishing boat proceeds are reported at any amount.
- New box 13a reports cash tips, box 13b reports the TTOC, and box 14 reports qualified overtime compensation.
- Golden parachute payments are removed from Form 1099-MISC and move to Form 1099-NEC box 3.
- Payer and recipient address fields are separated into individual entry boxes.
- Backup withholding can require filing regardless of payment amount.
The new threshold does not apply uniformly to every box. Filers should classify each payment first, then apply the amount tied to that payment type before they e-file Form 1099-MISC. This prevents low-threshold payments, such as royalties or attorney gross proceeds, from being missed.
FILING DEADLINE
Mar 31, 2027 (IRS e-file)
Feb 1, 2027 (Recipient)
EFFECTIVE FOR
Payments made in 2026
Note: If amounts are reported in box 8 or box 10, the recipient statement is due February 16, 2027. Paper returns filed with the IRS are generally due March 1, 2027.
Form 1099-K (Payment card & third-party network transactions)
- New box 1c reports cash tips and box 1d reports the applicable Treasury Tipped Occupation Code.
- For third-party settlement organizations, the federal 1099 threshold remains more than $20,000 in payments and more than 200 transactions.
- The law reverses the previously scheduled lower threshold and restores the pre-ARPA standard.
- Payment-card transactions are reportable at all amounts; the $20,000 and 200-transaction test applies specifically to third-party network transactions.
Payment platforms, marketplaces, and other settlement entities must distinguish payment-card transactions from third-party network transactions when applying the threshold. Entities serving tipped payees must also capture tip amounts and TTOCs before they file Form 1099-K.
FILING DEADLINE
Mar 31, 2027 (IRS e-file)
Feb 1, 2027 (Recipient)
EFFECTIVE FOR
Transactions made in 2026
Form 1099-DA (Digital asset proceeds from broker transactions)
- Brokers must report basis for covered digital assets acquired and sold through the same broker on or after January 1, 2026.
- The transition rule that generally allowed gross-proceeds-only reporting for 2025 sales no longer applies to covered 2026 transactions.
- Instructions distinguish covered from noncovered digital assets, which determines whether you must include basis.
- De minimis exceptions may apply to processor-of-digital-asset-payment sales of $600 or less, qualifying stablecoin sales of $10,000 or less under the optional method, and specified NFT sales of $600 or less under the optional method.
Brokers must accurately identify covered assets and retain acquisition data needed for basis. A transferred-in asset or an asset acquired before 2026 may be noncovered, so basis is not required in every case. Form 1099-DA also remains outside the Combined Federal/State Filing Program, which may create separate state filing steps when businesses file Form 1099-DA.
FILING DEADLINE
Mar 31, 2027 (IRS e-file)
Feb 16, 2027 (Recipient)
EFFECTIVE FOR
Sales made in 2026
Form 1099-R (Distributions from retirement plans)
- Box 7 is restructured: box 7a contains distribution codes, box 7b is the IRA/SEP/SIMPLE checkbox, box 7c identifies a Trump Account, and box 7d reports earnings on distributed excess Trump Account contributions.
- The former box 8 amount and percentage fields are renumbered as box 8a and box 8b.
- For tax year 2026, an issuer may report the year-end actuarial value of an annuitized commercial annuity in box 8a, but is not required to do so.
- Payer and recipient address fields are separated into individual entry boxes.
Retirement plan administrators, IRA custodians, and insurers need updated field mappings for the revised box 7 structure. The change affects how distribution type, IRA status, Trump Account status, and excess-contribution earnings are reported on Form 1099-R.
FILING DEADLINE
Mar 31, 2027 (IRS e-file)
Feb 1, 2027 (Recipient)
EFFECTIVE FOR
Distributions made in 2026
Form 1099-G (Certain government payments)
- New box 10 reports family leave benefits paid under a governmental paid family and medical leave program.
- Former state information boxes 10a, 10b, and 11 are renumbered as boxes 11a, 11b, and 12.
- Payer and recipient address fields are separated into individual entry boxes.
- The threshold is $10 for state or local tax refunds and unemployment compensation, and generally $2,000 for reemployment trade adjustment assistance payments, taxable grants, and governmental paid family leave benefits.
Government agencies administering paid family and medical leave programs now have a dedicated box for these benefits. Systems that map data by box number must also account for the shifted state fields before agencies file Form 1099-G.
FILING DEADLINE
Mar 31, 2027 (IRS e-file)
Feb 1, 2027 (Recipient)
EFFECTIVE FOR
Payments made in 2026
Form 1099-S (Proceeds from real estate transactions)
- Beginning with tax year 2026, digital assets used in a sale or exchange of real estate are reflected on Form 1099-S.
- Box 2a shows total gross proceeds, box 2b shows cash gross proceeds, and new box 2c shows digital asset gross proceeds measured in U.S. dollars.
- The change extends the IRS digital asset framework into reportable real estate closings.
Closing agents and other real estate filers should identify whether consideration includes digital assets and retain the U.S. dollar value needed for box 2c. Data-entry and import mappings must distinguish cash proceeds from digital asset proceeds when filers e-file Form 1099-S.
FILING DEADLINE
Mar 31, 2027 (IRS e-file)
Feb 16, 2027 (Recipient)
EFFECTIVE FOR
Transactions made in 2026
QUICK SELF-CHECK
How the 2026 Form 1099 Changes Affect You
A few quick checks can help you identify which Form 1099 changes are worth a closer look.
How the 2026 Form 1099 changes affect you
A few quick checks can help you identify which Form 1099 changes are worth a closer look.
Frequently Asked Questions
The main Form 1099 changes are the $2,000 threshold for Form 1099-NEC and many Form 1099-MISC payments, the restored Form 1099-K threshold for third-party settlement organizations, new tip and overtime fields, expanded Form 1099-DA basis rules, revised Form 1099-R boxes, a new Form 1099-G family leave box, new Form 1099-S digital asset fields, and the move from FIRE to IRIS.
No single threshold applies to every form. The key 2026 thresholds include:
- Form 1099-NEC: Generally $2,000 for qualifying nonemployee compensation.
- Form 1099-MISC: Many reportable payment types generally use a $2,000 threshold.
- Royalties and substitute payments: Generally remain at $10.
- Attorney gross proceeds: Generally $600.
- Cash fish purchases for resale: Generally $600.
- Form 1099-K: Applies to third-party settlement organization payments exceeding $20,000 and 200 transactions.
- Other 1099 forms: May have their own reporting thresholds and requirements.
Basis is required for covered digital assets. Generally, an asset becomes covered when the customer acquires it from the same broker on or after January 1, 2026, and the broker later effects its sale. Basis may not be required for a noncovered asset, including certain transferred-in assets or assets acquired
before 2026.
Box 7 is restructured into box 7a for distribution codes, box 7b for the IRA/SEP/SIMPLE checkbox, box 7c for the Trump Account checkbox, and box 7d for earnings on distributed excess Trump Account contributions. The former box 8 amount and percentage fields become boxes 8a and 8b.
Form 1099-G adds box 10 for family leave benefits paid by governmental paid family and medical leave programs. The state information fields are renumbered as boxes 11a, 11b,
and 12.
Form 1099-S now separates gross proceeds from real estate transactions into total gross proceeds, cash gross proceeds, and digital asset gross proceeds. Enter digital asset proceeds in box 2c using their U.S. dollar value.
FIRE will not be available after it shuts down at the end of 2026. IRIS becomes the only intake system for current-year, prior-year, and corrected information returns in the 2027 filing season. Existing FIRE users should obtain an IRIS Transmitter Control Code before they need to file. Explore More.
No. The requirement to e-file when filing 10 or more information returns in aggregate remains in place. What changes is the intake system: returns that previously went through FIRE must be submitted through IRIS for the 2027 filing season.
A draft is an advance version the IRS releases so filers and software providers can prepare. Draft forms are not approved for filing and can change before final publication. Use the current IRS form and instructions when preparing an actual return.
No. You cannot file a draft form with the IRS or furnish it as the official recipient statement. Filing a draft can lead to rejected or inaccurate returns.
Article Sources:
- 2026 Publication 1099, General Instructions for Certain Information Returns
- Instructions for Forms 1099-MISC and 1099-NEC (2026)
- Instructions for Form 1099-DA (2026)
- Instructions for Forms 1099-R and 5498 (2026)
- Instructions for Form 1099-G (2026)
- Instructions for Form 1099-S (2026)
- IRS FIRE retirement and IRIS transition
- IRS Form 1099-K threshold FAQs
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See How OBBBA Impacts Your Tax Compliance
Answer a few quick questions to see exactly which filing changes apply to you.
YOUR ROLE
What's your role?
Different filers are affected by different parts of OBBBA. Your role helps us narrow down which changes apply to you.
WHAT YOU DO
What does your work involve?
Select everything that applies. Some OBBBA changes only apply to specific activities, like paying tips or handling digital assets, so this helps us point to the exact rule instead of a generic overview.
Approximate annual filing volume
Answer both questions above to continue.
FORMS YOU FILE
Which forms do you file?
Several OBBBA thresholds and box changes are specific to individual forms. Not sure? Select everything you currently file, we'll narrow it down for you.
Note: We've pre-selected the forms that usually match what you told us. Add or remove any to match exactly what you file.
FILING GEOGRAPHY
Where do you file?
Federal threshold changes don't automatically apply at the state level. Add every state you file in so we can flag anywhere state rules haven't moved with the federal changes.
United States filing footprint
Select directly on the map or use the state list
Your OBBBA Preparation Checklist
Based on your role, activities, forms, and filing states, here's what applies to you.
KEY CHANGES THAT AFFECT YOUR FILING
WORTH KNOWING
Full expensing is back for equipment placed in service after Jan 19, 2025, and Section 179 limits are higher too, useful if you're planning purchases.
The 20% pass-through deduction is now permanent, so it's no longer a use-it-before-it-expires benefit.
A 1% tax now applies to certain cash transfers sent abroad starting 2026, relevant if your business handles cross-border payments.
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