Straight answer · Freelancers and contractors
For payments made after December 31, 2025, a business files a 1099-NEC or 1099-MISC once it pays you $2,000 in a year, up from $600. It adjusts for inflation starting in 2027.Verified
| Federal 1099 reporting | Threshold |
|---|---|
| 1099-NEC / 1099-MISC, before 2026 | $600 |
| 1099-NEC / 1099-MISC, payments after Dec 31, 2025 | $2,000 |
| Inflation adjustments begin | 2027 |
| 1099-K (payment apps and marketplaces) | $20,000 and more than 200 transactions |
Verified from Sovos's summary of the One Big Beautiful Bill Act. A higher threshold changes what gets reported, not what's taxable: income under $2,000 is still income. I'm not a tax pro; check with yours.
Fewer 1099s means you have to keep your own records of every payment. The Fix Kit for freelancers shows how to keep the books that the forms used to keep for you.
The number above is before taxes, before what comes out of your check, before the bills that eat it. TrueNET draws the line on what you really keep, free, in about a minute.
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