The short version

Pay a contractor $2,000 or more in 2026 and you send them a 1099-NEC. The old line was $600.
Payment apps send you a 1099-K only if you get over $20,000 in more than 200 payments.
No form does not mean no tax. Money you earn is income either way.

What a 1099 is

It is a short IRS form that says who you paid and how much. You send one to each contractor you paid enough, and a copy to the IRS. It is how the IRS matches what you paid with what they report.

1099 thresholdsIRS

1099-NEC to a contractorTax years after 2025. It was $600$2,000

1099-K from payment appsAnd more than 200 transactions$20,000

1099-K from card processorsSent no matter how muchAny amount

Who gets one now

Say you hired three people this year. Only those paid $2,000 or more need a form.

2026 contractorsExample

PainterPaid in 2026$1,500No form

ElectricianPaid in 2026$2,400Send a 1099

CleanerPaid in 2026$1,950No form

Under the old $600 line, all three would have needed one.

When forms are due

The 1099-NEC is due to your contractor and the IRS by Jan. 31. In 2027 that is a Sunday, so 2026 forms are due Monday, Feb. 1, 2027. The IRS says the $2,000 line may rise with inflation starting in 2027.

What to do now

1Add up what you paid each contractor in 2026.
2Get a W-9 from anyone at $2,000 or more. It has the details the form needs.
3Got paid through an app with no 1099-K? Count that money as income anyway.

How Kept helps

Kept connects to your bank and sorts every contractor payment as it happens. In January you see each person's total for the year in one list, instead of digging through statements.

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