Thanks to the OBBB (H.R.1 - One Big Beautiful Bill Act), for those issuing Forms 1099-MISC and 1099-NEC, the reporting requirement threshold for next year – beginning January 1, 2026 – will be raised from $600 to $2,000, and for the first time this limit will be indexed for inflation. The OBBB also makes a conforming change to the back-up withholding rules (Code section 3406) to increase the withholding exception to this new limit.
This is welcome relief for payers that make de minimis Form 1099 payments, particularly in light of the penalties involved with incorrect Form 1099 reporting (Code section 6721/6722).
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