The 1099 threshold for 2026 is $2,000
For payments made in 2026, a client only has to send you a Form 1099-NEC once they have paid you $2,000 or more in the year. It used to be $600. So if you freelance, drive, design or fix things for several clients, expect fewer forms in January 2027. What has not changed: the income is reportable either way.
Sources: IRS, Instructions for Forms 1099-MISC and 1099-NEC, Form 1099-K FAQs and What to do with Form 1099-K. Checked against irs.gov on September 26, 2026.
What changed, form by form
| Form | Payments in 2025 | Payments in 2026 |
|---|---|---|
| 1099-NEC (work for a business) | $600 or more | $2,000 or more |
| 1099-K (payment apps, marketplaces) | Over $20,000 and more than 200 transactions | |
The IRS describes the change as applying to tax years beginning after 2025, and says the $2,000 figure may be adjusted for inflation beginning in calendar year 2027. The same change raised the $600 threshold for the payments reported on Form 1099-MISC.
Do you have to report income without a 1099?
Yes. The threshold decides when a payer has to file a form. It does not decide what counts as income. In the IRS's words, “you must report all income you receive on your tax return”, and that holds whether a form was sent or not.
The practical effect of the change is on your records, not your tax. With fewer forms arriving, a client who paid you $1,800 across the year may send nothing at all, and the only record of that income is the one you kept.
How to report income without a 1099
- Keep your own list of every payment as it arrives: the date, who paid you, how much, and what it was for.
- Total it for the year, including payments that came with a form and payments that did not.
- If you work for yourself, report it on Schedule C (Form 1040) as business income, with your business expenses against it.
- Check the forms you do get against your list. A 1099 that does not match your records is worth a question to the payer before you file.
Common questions
What is the 1099 threshold for 2026? $2,000. For payments made in 2026, a business reports nonemployee compensation on Form 1099-NEC when it paid you $2,000 or more in the year. The IRS says the figure may be adjusted for inflation beginning in 2027.
Is the 1099-NEC threshold $600 or $2,000? It depends on the year of the payment. Payments made in 2025 used the $600 threshold. Payments made in 2026 use $2,000.
Do I have to report income if I did not get a 1099? Yes. The IRS says you must report all income you receive on your tax return, whether or not a form was sent. A missing 1099 changes the paperwork you receive, not what is taxable.
How do I report income without a 1099? If you work for yourself, you report it as business income on Schedule C (Form 1040), using your own records of what you were paid: the date, who paid you, and the amount.
Will I still get a 1099-K from a payment app? Only above the federal threshold of more than $20,000 in payments and more than 200 transactions, although the IRS notes a platform may still send one for less.
Keep the record the forms no longer will
AFGTracker logs each payment as it arrives, with the client and the date, and totals the year for you and your accountant.
General information from IRS publications, not tax advice. State rules can differ. AFGTracker is a product of Arqam Financial Group.