As tax rules continue to change, businesses and individuals who file Form 1099 should be aware of some important updates coming in the 2026 tax year. These changes mainly focus on higher reporting limits, a new form for digital assets, and fewer forms for small payments. The goal is to reduce paperwork while still keeping income reporting clear and accurate.
Below is a simple breakdown of what’s changing and what it means for you.
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Higher Reporting Limit for Form 1099-NEC and 1099-MISC
One of the biggest updates is the increase in the reporting limit for Form 1099-NEC and Form 1099-MISC.
Until now, businesses were required to file these forms if they paid $600 or more during the year. Starting with payments made on or after January 1, 2026, the new reporting limit will be $2,000.
- Form 1099-NEC applies to payments made to freelancers, contractors, and other non-employees.
- Form 1099-MISC covers income such as rent, prizes, awards, and other miscellaneous payments.
This higher limit means many small payments will no longer require a 1099 form. The new amount will also be adjusted over time to match inflation.
Form 1099-K Threshold Restored to $20,000
Another key change affects Form 1099-K, which is used by payment apps and card processors like PayPal, Venmo, and credit card companies.
The reporting limit is being permanently restored to the earlier rule:
- More than $20,000 in total payments
- More than 200 transactions in a year
This change reduces confusion for individuals who use payment apps for personal transfers or small side income. Fewer people will receive Form 1099-K for casual or low-value transactions.
New Form 1099-DA for Digital Assets
A new form called Form 1099-DA is being introduced to report sales and exchanges of digital assets such as cryptocurrency and NFTs.
For activity during 2025, brokers will report gross sale amounts on forms issued in early 2026. For digital assets bought after January 1, 2026, brokers will also begin reporting cost details.
This update aims to make digital asset reporting more consistent and easier to understand for both filers and taxpayers.
Less Paperwork, But Reporting Still Matters
With higher limits in place, many small businesses will issue fewer 1099 forms. This helps lower filing time, printing costs, and data handling work.
However, it’s important to remember:
- All taxable income must still be reported, even if no 1099 is issued.
- Freelancers and vendors must include all earnings on their tax return.
- Businesses should continue collecting Form W-9 and keeping payment records throughout the year.
Good recordkeeping remains essential for smooth filing and fewer errors.
Key 1099 Deadlines in Early 2026
For forms related to 2025 income, keep these dates in mind:
- February 2, 2026
Deadline to provide copies of Form 1099-NEC and most Form 1099-MISC to recipients, and to file Form 1099-NEC with the IRS. - March 31, 2026
Deadline to e-file most other 1099 forms, including Form 1099-MISC and Form 1099-K.
File Your 1099 Forms the Easy Way
With changing rules and new forms, using a trusted e-file service can save time and reduce mistakes. Form1099Online.com, an IRS-authorized e-file provider, helps businesses file Form 1099-NEC, 1099-MISC, 1099-K, and more through a simple online process.
From secure filing to on-time submissions, Form1099Online.com makes 1099 filing easier, so you can focus on running your business with confidence.