# 1099-NEC and 1099-MISC at year end

> Who gets a 1099-NEC or 1099-MISC for 2026 payments, the new $2,000 threshold, the deadlines, Form 1096 and IRIS, on Northwind's vendor list.

Source: https://lopifi.com/learn/1099-nec-and-1099-misc-at-year-end
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**Which vendors need a 1099-NEC or 1099-MISC, and what is the threshold for 2026?** Who gets a 1099-NEC or 1099-MISC for 2026 payments, the new $2,000 threshold, the deadlines, Form 1096 and IRIS, on Northwind's vendor list.

Each January a business reports what it paid non-employees the year before. Services go on [Form 1099-NEC](https://lopifi.com/md/glossary/form-1099-nec); rent and a list of other payments go on [Form 1099-MISC](https://lopifi.com/md/glossary/form-1099-misc). Who gets one turns on four things: what was paid for, who was paid, how much, and how. The "how much" changed for 2026.

| Payments made in | Threshold | Forms filed in |
| --- | --- | --- |
| 2025 | $600 | Early 2026 |
| 2026 | $2,000 | Early 2027 |
| 2027 on | Indexed for inflation; not yet published | Early 2028 on |

The 1099-NEC and 1099-MISC threshold, by the calendar year the payments were made.

The One Big Beautiful Bill Act raised the threshold in IRC §6041 from $600 to $2,000 for payments made after December 31, 2025, and indexes it for calendar years after 2026. So Northwind's first 1099s, for 2026, use $2,000.

> “applicable with respect to payments made after Dec. 31, 2025”

— [IRC §6041(a), (h), as amended by Pub. L. 119-21, §70433](https://www.law.cornell.edu/uscode/text/26/6041), Information at source: the $2,000 threshold, indexed for calendar years after 2026

> “Enter nonemployee compensation (NEC) of $2,000 or more.”

— [Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026), Form 1099-NEC, box 1a](https://www.irs.gov/instructions/i1099mec), The 1099-NEC threshold for 2026 payments

*[Figure: form 1099]*

A bookkeeper paid $750 a month, 4 months: $3,000, over the $2,000 line.

Who gets one is a short decision tree: services or rent, to someone who is not a corporation (a law firm counts whatever its form), $2,000 or more in the year, paid by check, ACH, wire or cash. Card and payment-network payments are reported by the processor on [Form 1099-K](https://lopifi.com/md/glossary/form-1099-k), and a vendor you [backup-withheld from](https://lopifi.com/md/learn/vendor-onboarding-w-9-and-tin-matching/backup-withholding) gets a form at any amount.

> **For 2026 payments: $2,000 or more, for services or rent, to a non-corporation (or to any law firm), paid other than by card, gets a 1099 by February 1, 2027.**

In this lesson: **who gets a 1099**, decided vendor by vendor on Northwind's list, with an exercise; and **filing them**, with the deadlines, Form 1096 and IRIS.

## Pages in this lesson

- [Who gets a 1099: Northwind's vendor list](https://lopifi.com/md/learn/1099-nec-and-1099-misc-at-year-end/who-gets-a-1099) — 7 min. Which vendors get a 1099 for 2026: corporations, law firms, landlords, card payments, foreign contractors?
- [Filing 1099s: deadlines, Form 1096 and IRIS](https://lopifi.com/md/learn/1099-nec-and-1099-misc-at-year-end/filing-1099s-iris-and-form-1096) — 6 min. When are 1099s due for 2026 payments, and how do you file them: Form 1096, IRIS or software?

## Where this lesson's rules come from

- [IRC §6041(a), (h), as amended by Pub. L. 119-21, §70433](https://www.law.cornell.edu/uscode/text/26/6041) — Information at source: the $2,000 threshold, indexed for calendar years after 2026 (statute)
- [Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026), Form 1099-NEC, box 1a](https://www.irs.gov/instructions/i1099mec) — The 1099-NEC threshold for 2026 payments (irs)
- [Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026), Form 1099-MISC, box 1](https://www.irs.gov/instructions/i1099mec) — Rent goes on Form 1099-MISC (irs)
- [Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026), Payments to corporations](https://www.irs.gov/instructions/i1099mec) — Corporations are generally exempt; law firms are not (irs)
- [Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026), Payments not reported](https://www.irs.gov/instructions/i1099mec) — Goods are not reported on a 1099 (irs)
- [Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026), Form 1099-K](https://www.irs.gov/instructions/i1099mec) — Card and payment-network payments are reported on Form 1099-K, not the NEC or MISC (irs)
- [Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026), Due dates](https://www.irs.gov/instructions/i1099mec) — Form 1099-NEC is due January 31 (irs)
- [Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026), Due dates](https://www.irs.gov/instructions/i1099mec) — Form 1099-MISC runs on a later IRS deadline (irs)
- [Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026), Electronic filing; T.D. 9972](https://www.irs.gov/instructions/i1099mec) — Ten or more information returns must be filed electronically (irs)
- [IRS Pub. 1099 (2026), General Instructions for Certain Information Returns — due dates](https://www.irs.gov/publications/p1099) — A due date on a weekend or legal holiday moves to the next business day (irs)
- [Form 1099-NEC (Rev. December 2026)](https://www.irs.gov/pub/irs-pdf/f1099nec.pdf) (PDF) — Form 1099-NEC, Nonemployee Compensation (form)
- [Form 1099-MISC](https://www.irs.gov/pub/irs-pdf/f1099msc.pdf) (PDF) — Form 1099-MISC, Miscellaneous Information (form)
- [Form 1096 (2026), Purpose of form](https://www.irs.gov/pub/irs-pdf/f1096.pdf) (PDF) — Form 1096, Annual Summary and Transmittal of U.S. Information Returns (form)
- [IRS — About Form 1096](https://www.irs.gov/forms-pubs/about-form-1096) — Form 1096 is for paper filings only (irs)
- [IRS — E-file information returns with IRIS](https://www.irs.gov/filing/e-file-information-returns-with-iris) — IRIS, the Information Returns Intake System (irs)
- [Wikipedia, “Form 1099”](https://en.wikipedia.org/wiki/Form_1099) — Form 1099 (reference)

## Read further

- https://lopifi.com/md/startups/form-1099-nec-for-startups
- https://lopifi.com/md/startups/collecting-w9s-and-backup-withholding
- https://lopifi.com/md/startups/startup-tax-deadlines-by-month
- https://lopifi.com/md/accounting/1099-nec
- https://lopifi.com/md/accounting/form-1099-k
- https://lopifi.com/md/docs/domain/06-procure-to-pay

- **Track:** [Accounts payable](https://lopifi.com/md/learn/ap)
- **Lesson:** Lesson 8 of 8 — 6 min
- **Terms taught:** [Form 1099-NEC](https://lopifi.com/md/glossary/form-1099-nec), [Form 1099-MISC](https://lopifi.com/md/glossary/form-1099-misc), [Form 1099-K](https://lopifi.com/md/glossary/form-1099-k), [Form 1096](https://lopifi.com/md/glossary/form-1096), [IRIS](https://lopifi.com/md/glossary/iris), [Form W-9](https://lopifi.com/md/glossary/form-w-9), [Backup withholding](https://lopifi.com/md/glossary/backup-withholding), [Combined Federal/State Filing Program](https://lopifi.com/md/glossary/combined-federal-state-filing-program)
- **Previous:** [AP aging and days payable outstanding, AP · Lesson 7](https://lopifi.com/md/learn/ap-aging-and-days-payable-outstanding)
- **Next:** [Who gets a 1099: Northwind's vendor list](https://lopifi.com/md/learn/1099-nec-and-1099-misc-at-year-end/who-gets-a-1099)
- **The course:** https://lopifi.com/md/learn