1099-NEC
The IRS form a business sends to report $2,000 or more of nonemployee compensation paid to a contractor in a year (2026 payments).
Form 1099-NEC reports payments for services made to someone who is not an employee. For payments made after December 31, 2025 the reporting threshold is $2,000 per payee, up from $600, and it is scheduled to be adjusted for inflation starting in 2027. Some states keep lower thresholds.
The threshold decides whether the payer must send a form. It does not decide whether the income is taxable: all self-employment income is reportable from the first dollar, and self-employment tax applies once net earnings reach $400. Form 1099-K, which reports payment processor volume, is separate and applies above $20,000 and 200 transactions.
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