Fewer 1099s, Same Taxes: The Biggest 2026 Change for Self-Employed Folks
What changed: the $600 rule is now $2,000
Starting with payments made in 2026, a business only has to send you a Form 1099-NEC if it paid you $2,000 or more for the year, up from $600. The same change covers most payments reported on 1099-MISC. The $2,000 figure will be adjusted for inflation starting in 2027.
Who paid you in 2026 | Old $600 rule | New $2,000 rule |
Gallery bought $1,500 of your work | 1099 | No 1099 |
Studio paid $1,800 for a season of classes | 1099 | No 1099 |
Agency paid $4,000 for a project | 1099 | 1099 |
Many of you may get few or no 1099s for 2026. Forms for 2026 payments are due by February 1, 2027.
Payment apps follow their own rule
Venmo, PayPal, Square, Etsy and similar platforms only send a 1099-K if you cross $20,000 and 200 transactions on that platform in a year. Client payments made by card or app don't go on a 1099-NEC at all.
No form doesn't mean no tax
The threshold change is about paperwork, not about what counts as income. Every dollar you earned from your work is still taxable, and once your net self-employment earnings reach $400 for the year, self-employment tax applies too.
What to do now, while 2026 is still open
Keep your own income log: write down the date, who paid you, how much, and how they paid. A spreadsheet is fine.
Fill in 2026 now: match your bank and payment app history to your log while you still remember who paid you for what.
Keep business and personal money separate when you can. It makes the log much easier to keep.
Check your January 15, 2027 estimated payment against what you've actually earned. My Self-Employment Quarterly Tax Payment Worksheet can help.
The fix isn't glamorous, but it's simple: you become your own 1099.
If you pay other freelancers
You only need to file a 1099-NEC for anyone you paid $2,000 or more in 2026. Still collect a W-9 before you pay anyone, and check your state's rules, since some set their own thresholds.
A few other 2026 changes
Charitable deduction: up to $1,000 in cash gifts ($2,000 if married filing jointly), even if you take the standard deduction. Read the full charitable deduction post.
Bigger standard deduction: $16,100 for single filers, $24,150 for heads of household, and $32,200 for married couples filing jointly.
20% QBI deduction: now permanent.
Need help getting organized?
If your records are a little (or a lot) behind, book a free 15-minute intro consult. No judgment, just a plan for where you stand before tax season.
This post is for general educational purposes and is not individualized tax advice. Talk with a tax professional about your situation.
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