What changed for 2026
P.L. 119-21, signed July 4, 2025, replaced the $600 amount in IRC 6041 and 6041A with $2,000 for payments made after Dec. 31, 2025, adjusted for inflation for years after 2026. Everything that used the $600 amount moved with it: nonemployee compensation, rents, prizes and other income, medical payments, crop insurance, taxable grants, business interest paid by non-financial payers, liquidation distributions, and backup withholding on those payments. The year that counts is the year you paid, not the year you file: payments made in 2025 still use $600 on the forms filed in early 2026.
What did not move: the $10 amounts (royalties, interest, dividends, retirement distributions), the $600 amounts that rest on other sections (gross proceeds to attorneys, fish purchases, canceled debt, real estate, mortgage interest), and the $5,000 direct sales amount. Treasury's proposed regulations (REG-113229-25, May 2026) conform the regulations to the new amounts.
The 2027 amount will be $2,000 adjusted for inflation. The IRS had not published it when this page was updated; it normally appears in the annual inflation adjustment revenue procedure in the fall.
2025 and 2026 side by side
| Form and box | Payment | Paid in 2025 | Paid in 2026 |
|---|---|---|---|
| 1099-NEC 1a | Nonemployee compensation | $600 | $2,000 |
| 1099-NEC 3 | Excess golden parachute payments | Any amount | Any amount |
| 1099-NEC / 1099-MISC NEC 1b, MISC 13a | Cash tips (part of box 1a or box 3) | No box before 2026 | No separate threshold: shown when the box 1a or box 3 amount is reported |
| 1099-NEC / 1099-MISC NEC 1d, MISC 14 | Qualified overtime compensation (part of box 1a or box 3) | No box before 2026 | No separate threshold: shown when the box 1a or box 3 amount is reported |
| 1099-MISC 1 | Rents | $600 | $2,000 |
| 1099-MISC 2 | Royalties | $10 | $10 |
| 1099-MISC 3 | Prizes, awards and other income | $600 | $2,000 |
| 1099-MISC 5 | Fishing boat proceeds | All amounts | All amounts |
| 1099-MISC 6 | Medical and health care payments | $600 | $2,000 |
| 1099-NEC / 1099-MISC NEC 2 or MISC 7 | Direct sales of consumer products for resale | $5,000 | $5,000 |
| 1099-MISC 8 | Substitute payments in lieu of dividends or tax-exempt interest | $10 | $10 |
| 1099-MISC 9 | Crop insurance proceeds | $600 | $2,000 |
| 1099-MISC 10 | Gross proceeds paid to an attorney | $600 | $600 |
| 1099-MISC 11 | Fish purchased for resale (cash) | $600 | $600 |
| 1099-MISC 12 | Section 409A deferrals (optional box) | $600 (optional box) | $2,000 (optional box) |
| 1099-MISC 15 | Nonqualified deferred compensation includible under section 409A | $600 | All amounts in the Pub 1099 (2026) chart; the 1099-MISC instructions (Rev. 12-2026) say $2,000 or more |
| 1099-INT 1 | Interest paid in a trade or business that is not reportable at $10 (for example a seller-financed note) | $600 | $2,000 |
| 1099-INT 1, 3, 8 | Interest on deposits, bonds and Treasury obligations; tax-exempt interest | $10 | $10 |
| 1099-DIV 1a, 2a, 3, 5, 12 | Dividends and other distributions on stock | $10 | $10 |
| 1099-DIV 9 and 10 | Cash and noncash liquidation distributions | $600 | $2,000 |
| 1099-OID 1, 8, 11 | Original issue discount | $10 | $10 |
| 1099-PATR 1 to 5 | Patronage dividends and other cooperative distributions | $10 | $10 |
| 1099-G 1 and 2 | Unemployment compensation; state or local tax refunds | $10 | $10 |
| 1099-G 5 and 6 | RTAA payments and taxable grants | $600 | $2,000 |
| 1099-G 10 | Governmental paid family leave benefits | Not a separate box before 2026 | $2,000 |
| 1099-G 7 and 9 | Agriculture payments and Commodity Credit Corporation market gain | See the Form 1099-G instructions | See the Form 1099-G instructions |
| 1099-B 1d, 8 to 11, 13 | Broker sales, regulated futures and barter exchanges | All amounts | All amounts |
| 1099-DA 1f | Digital asset sales by brokers | See the form instructions (optional aggregate reporting for some stablecoin and NFT sales) | See the form instructions (optional aggregate reporting for some stablecoin and NFT sales) |
| 1099-S 2a to 2c, 4 | Real estate gross proceeds | Generally $600; a principal residence of $250,000 or less ($500,000 married) can be excepted on the seller's certification | Generally $600; a principal residence of $250,000 or less ($500,000 married) can be excepted on the seller's certification |
| 1099-C 2 | Canceled debt | $600 | $600 |
| 1099-A 2 and 4 | Acquisition or abandonment of secured property | All amounts | All amounts |
| 1099-CAP 2 | Cash, stock and property received in a change in control or capital structure | Over $1,000 per shareholder | Over $1,000 per shareholder |
| 1099-R 1 | Retirement plan, IRA, annuity and insurance contract distributions | $10 | $10 |
| 1099-Q 1 | Qualified tuition program (529) and Coverdell ESA distributions | All amounts | All amounts |
| 1099-QA 1 | ABLE account distributions | All amounts | All amounts |
| 1099-SA 1 | HSA, Archer MSA and Medicare Advantage MSA distributions | All amounts | All amounts |
| 1099-LTC 1 and 2 | Long-term care and accelerated death benefits | All amounts | All amounts |
| 1099-LPS 1 | Long-term care premiums paid from a defined contribution plan | No Form 1099-LPS before 2026 | All amounts |
| 1099-LS 1 | Payments in a reportable life insurance policy sale | All amounts | All amounts |
| 1099-SB 1 and 2 | Seller's investment in a life insurance contract | All amounts | All amounts |
| 5498 1 to 15 | IRA contributions, rollovers, conversions and year-end value | All amounts | All amounts |
| 5498-ESA 1 and 2 | Coverdell ESA contributions | All amounts | All amounts |
| 5498-SA 1 to 5 | HSA and MSA contributions and year-end value | All amounts | All amounts |
| 5498-QA 1 to 4, 8 | ABLE account contributions, rollovers and year-end value | All amounts | All amounts |
| 5498-TA 1 to 6 | Trump account contributions and year-end value | No Form 5498-TA before 2026 | All amounts |
| 1098-Q 1a to 5 | Qualifying longevity annuity contract (QLAC) premiums and value | All amounts | All amounts |
| 3921 3 to 5 | Incentive stock option exercises | All amounts | All amounts |
| 3922 3 to 6 | Employee stock purchase plan share transfers | All amounts | All amounts |
| 1098 1, 5, 6 | Mortgage interest, points and mortgage insurance premiums received from an individual | $600 per mortgage | $600 per mortgage |
| 1098-E 1 | Student loan interest received | $600 | $600 |
| 1098-VLI 1 | Interest on a specified passenger vehicle loan | $600 per loan | $600 per loan |
| 1098-T 1 and 5 | Qualified tuition payments and scholarships | See the form instructions (every student with a reportable transaction, with exceptions) | See the form instructions (every student with a reportable transaction, with exceptions) |
| 1098-C 4c, 6b | Donated vehicles, boats and airplanes | Claimed value over $500 | Claimed value over $500 |
| 1098-F 1 to 4 | Fines, penalties, restitution and remediation under a court order or agreement | $50,000 | $50,000 |
| 1097-BTC 1 | Tax credit bond credits | $10 | $10 |
| 1042-S 2 | U.S.-source income paid to a foreign person | All amounts | All amounts |
Form 1099-K, year by year
The American Rescue Plan Act of 2021 cut the third party network threshold from more than $20,000 and 200 transactions to $600, starting with 2022. The IRS delayed it twice, keeping $20,000 and 200 for 2022 and 2023, then announced a phase-in: $5,000 for 2024 and $2,500 for 2025. P.L. 119-21 repealed the change retroactively, as if it had never been enacted, so the threshold is more than $20,000 and more than 200 transactions for every year. Forms for 2024 were largely issued at the $5,000 transition amount before the law changed. Payment card transactions have no threshold, and several states require 1099-Ks at lower amounts.
W-2G gambling winnings
For 2026, P.L. 119-21 and the proposed regulations raise the slot machine and bingo threshold from $1,200, keno from $1,500, and other wagers from $600 (with the 300-times-the-wager test) to $2,000, indexed after 2026. Poker tournaments stay at $5,000, and regular gambling withholding still starts at $5,000.
Questions people ask
Does the $2,000 apply to 1099s I file in January 2026?
No. Those report payments made in 2025, which use $600. The $2,000 amount applies to payments made in 2026, reported in early 2027.
Is the threshold per payment or per payee?
Per payee, per year, for each kind of payment: the total you paid that payee in the calendar year.
Can I still file below the threshold?
Yes. Filing a form for an amount under the threshold is allowed, and some payers do it to keep one rule for all payees.
Do states follow the $2,000?
Not all. States set their own thresholds for state 1099 filing and many still use $600 or lower. See the state pages.