For payments made in 2026, Forms W-2 and 1099-NEC are due by February 1, 2027 (the usual January 31 deadline falls on a Sunday), both to the IRS (or SSA for W-2s) and to the worker. Two thresholds changed for 2026: Form 1099-NEC now applies to nonemployee payments of $2,000 or more, and Form 1099-K reverted to $20,000 and 200 transactions.
Who needs what
| Form | Who it is for | Due |
|---|---|---|
| W-2 | Employees on your payroll | January 31 to employees and to the SSA |
| 1099-NEC | Contractors and freelancers paid $2,000 or more in 2026 | January 31 to the contractor and the IRS |
| 1099-MISC | Rent, prizes and other payments; attorney gross proceeds of $600 or more | Varies by box; check the instructions |
| 1099-K | Issued to you by payment platforms if you had over $20,000 and over 200 transactions | Platforms send it; you report the income |
What changed for 2026
1099-NEC threshold is now $2,000
The IRS instructions confirm that for tax years beginning after 2025, the reporting threshold for nonemployee compensation rose from $600 to $2,000, and may be adjusted for inflation from 2027. Contractors you paid less than $2,000 in 2026 do not need a 1099-NEC, but you still keep records of what you paid.
1099-K is back to $20,000 and 200 transactions
Under the One, Big, Beautiful Bill, the 1099-K threshold for payment apps and online marketplaces reverted to more than $20,000 and more than 200 transactions. Amazon, Shopify and Etsy sellers below that level may not get a 1099-K, but the income is still taxable and must be reported.
Year-end checklist for employers and businesses using contractors
- Collect a Form W-9 from every contractor before you pay them
- Reconcile payroll totals to your quarterly Form 941 filings
- List every contractor payment for 2026 and flag those at $2,000 or more
- Check whether any contractor is really an employee
- File electronically if you have 10 or more information returns in total
How we help
Our payroll and payroll tax team prepares W-2s and 1099s, files them on time and keeps your 941s and state filings in line. Running an online store? See our accounting for Amazon and eCommerce sellers.
Frequently asked questions
When are W-2s and 1099-NECs due for 2026?
Both are due February 1, 2027, because January 31 falls on a Sunday, to the worker and to the SSA (W-2) or IRS (1099-NEC).
What is the 1099-NEC threshold for 2026?
$2,000. For tax years beginning after 2025, the threshold rose from $600 to $2,000 and may be adjusted for inflation from 2027.
What is the 1099-K threshold now?
Payment platforms issue Form 1099-K when payments exceed $20,000 and the number of transactions exceeds 200.
Do I report income if I did not get a 1099?
Yes. All business income is taxable whether or not you receive a 1099.
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Sources: IRS: Instructions for Forms 1099-MISC and 1099-NEC · IRS: FAQs on the Form 1099-K threshold. This article is general information, not tax advice for your situation. Last reviewed October 2026.