Major Tax Law Changes Starting in 2026

1099 Reporting Threshold Increase

• 1099-NEC and 1099-MISC threshold increases from $600 → $2,000.
• Applies to payments made starting Jan 1, 2026.
• The threshold will then adjust for inflation starting in 2027.

Practical impact

• Businesses will issue fewer 1099s.
• Vendors paid $600–$1,999 will no longer receive a 1099, though income is still taxable.