Form 1099 for small businesses: the 2026 rules in plain English
For payments made in 2026, the federal 1099 line for contractors and rent moved from $600 to $2,000. These pages explain the new rule from the law itself, who usually does not get a form, and when the forms are due.
Why 2026 is different
A law signed on July 4, 2025 (Pub. L. 119-21) raised the amount that triggers the most common small-business information returns. For payments made after December 31, 2025, a business generally reports payments to a non-employee for services, or payments of rent, only when the year's total to that payee reaches $2,000. For 2025 payments the figure was still $600. From 2027 the $2,000 will rise with inflation.
That change is simple to state but easy to get wrong in practice, for three reasons. Many web pages, and the Treasury regulations themselves, still show $600. The exceptions (card payments, corporations, goods, employees) did not change, but they matter more now. And the deadlines for 2026 payments land on unusual dates because January 31, 2027 is a Sunday.
Each page below answers one question and links the exact statute or regulation we read. Where we could not verify something, such as the box numbers on the IRS forms, we say so instead of guessing.
Want the list for your own business? The free Year-End Vendor Check reads your 2026 bank, card, QuickBooks or Xero export in your browser and sorts each payee into "likely needs a 1099", "near the line", "probably not needed" and "need info". Nothing is uploaded.