Why it matters
A business that pays a contractor enough to meet the threshold generally has to file a 1099-NEC and give the contractor a copy. A missing form can mean a penalty and a missing deduction for the business.
Example
A business pays a designer $6,000 during 2026. The business collects a W-9, files Form 1099-NEC for the designer and sends a copy to the designer by the January deadline.
Related terms
Questions about Form 1099-NEC
What is the 1099-NEC threshold for 2026?
For payments made in 2026, the threshold is $2,000 per payee for the year, up from $600 for earlier payments. Some payments keep their own rules, so check the current IRS instructions.
When is Form 1099-NEC due?
Form 1099-NEC for payments made in 2026 is due January 31, 2027. Because January 31, 2027 is a Sunday, the deadline moves to Monday, February 1, 2027.