New IRS 1099 Threshold Changes Coming in 2026 (What You Need to Know)

Significant changes are coming to Form 1099 reporting in 2026—and if you own a business, hire contractors, or pay vendors, these updates could directly impact your compliance and reporting requirements. In this video, Tom Hicks, CPA of J.T. Hicks and Company, breaks down everything business owners need to know about the upcoming IRS changes, including new thresholds, reporting requirements, and compliance considerations. One of the biggest changes? The 1099 reporting threshold is increasing from $600 to $2,000 starting in 2026, along with additional updates that may reduce administrative burden—but also require careful planning. This is not just a compliance update—it’s a strategic opportunity to improve how your business handles contractor payments and tax reporting. You’ll Learn: What is changing with Form 1099 in 2026 The new $2,000 reporting threshold and what it means Which payments and entities are affected How 1099-NEC, 1099-MISC, and 1099-K fit into the changes Critical compliance tips to avoid penalties Why collecting W-9 forms before payment is essential How to simplify year-end reporting using digital tools Why This Matters Failing to properly handle 1099 reporting can lead to penalties, unnecessary stress, and last-minute scrambling during tax season. These changes create an opportunity to streamline your bookkeeping—but only if you prepare in advance. Important Takeaway A good tax advisor doesn’t just prepare your return—they help you plan ahead and stay compliant while minimizing risk and tax burden. That’s what we call tax efficiency. Schedule a Consultation If you want to understand how these changes impact your specific business situation, reach out to schedule a consultation through our website or contact our office directly. About Us At JT Hicks and Company, we help business owners across the U.S. navigate complex tax rules with proactive planning, advisory services, and compliance support.