IRS Raises The 1099 Threshold To $2,000 For 2026: What Freelancers Need To Know

Key Points

• Businesses only have to send a Form 1099-NEC to contractors they pay $2,000 or more in 2026, up from $600.
• Most Form 1099-MISC payments also moved to $2,000, but royalties stay at $10 and attorney gross proceeds stay at $600.
• Income under $2,000 is still taxable, and self-employment tax still starts at $400 of net earnings.