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1099 threshold checker

For payments made in 2026, you file Form 1099-NEC or 1099-MISC when you pay a vendor $2,000 or more in a year. For 2025 and earlier it was $600. Royalties stay at $10 and gross proceeds paid to an attorney at $600. Enter what you paid a vendor to see which forms apply. General information, not tax advice.

Updated October 23, 2026 · Aequo editorial team

Check a vendor

Tax year (year paid)

Vendor type (from its W-9)

Total paid to this vendor in 2026, by type

Services by a contractor or freelancerFees, commissions, labor, professional services (not attorneys)

Legal fees for servicesAttorneys' fees for legal services

RentOffice, equipment or land rent (not paid to a real estate agent)

RoyaltiesPayments for the use of patents, copyrights, natural resources

Other incomePrizes, awards and other reportable income that is not for services

Medical and health care paymentsPaid to physicians or other health care providers

Gross proceeds paid to an attorneyFor example a settlement paid to a claimant’s attorney

All of these payments were made by credit card, debit card or a payment app such as PayPal.

Result for 2026

File 1099-NEC

Services by a contractor or freelancer: report on 1099-NEC, box 1
$2,500 is at or above the $2,000 threshold for 2026.

Thresholds for 2026

Nonemployee compensation, rents, other income, medical: $2,000
Royalties: $10
Gross proceeds paid to an attorney: $600

General information, not tax advice. Rules have exceptions this checker does not cover; confirm with the IRS instructions or a tax professional.

1099 thresholds by year

The general threshold rose from $600 to $2,000 for payments made from January 1, 2026. Royalties and attorney gross proceeds did not change.

Report when total payments for the year are at or above the amount.
Payment	Form and box	Paid in 2025 or earlier	Paid in 2026
Nonemployee compensation (contractors, freelancers)	1099-NEC, box 1	$600	$2,000
Attorneys' fees for legal services	1099-NEC, box 1	$600	$2,000
Rents	1099-MISC, box 1	$600	$2,000
Royalties	1099-MISC, box 2	$10	$10
Other income	1099-MISC, box 3	$600	$2,000
Medical and health care payments	1099-MISC, box 6	$600	$2,000
Gross proceeds paid to an attorney	1099-MISC, box 10	$600	$600

Source: IRS Instructions for Forms 1099-MISC and 1099-NEC. The $2,000 amount may be adjusted for inflation from 2027.

How the checker decides

It adds up what you paid the vendor in the year by payment type, applies that year's threshold, and removes payments that are generally not reported.

Contractor services and legal fees both go in box 1 of 1099-NEC, so they are added together against one threshold.
Each 1099-MISC box (rent, royalties, other income, medical, attorney gross proceeds) is compared with its own threshold.
Payments to corporations are generally excluded, except legal fees, attorney gross proceeds and medical payments.
Payments by card or payment app are excluded because the processor reports them on Form 1099-K.

Worked example: in 2026 you pay a sole-proprietor designer $1,800 and a law firm (a corporation) $2,400 in legal fees. The designer is below the $2,000 threshold, so no 1099-NEC. The law firm gets a 1099-NEC even though it is a corporation, because legal fees are reportable to corporations and $2,400 is above the threshold. Paid in 2025, the designer would have needed a 1099-NEC at the $600 threshold.

Not sure how a vendor is taxed? Its Form W-9 tells you.

Not tax advice. This checker covers the common cases for Forms 1099-NEC and 1099-MISC. It does not cover backup withholding, state filing rules, foreign payees, or every exception in the IRS instructions. Confirm with the IRS instructions or a tax professional.

Aequo AP

Track W-9s and 1099 vendors as you pay them

Aequo AP tracks W-9 status for each vendor, stores tax IDs encrypted, and prepares draft 1099 records screened against the threshold for the tax year, using the same year-aware rules as this checker.

Aequo does not e-file 1099s; you file through your accounting system or a filing provider. Accounting sync is live with QuickBooks Online, Xero, FreshBooks and Zoho Books.

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Frequently asked questions

What is the 1099 threshold for 2026?

For payments made in 2026, the threshold for Form 1099-NEC and most Form 1099-MISC boxes is $2,000, up from $600. Public Law 119-21 raised it for payments made after December 31, 2025. Royalties stay at $10 and gross proceeds paid to an attorney stay at $600.

What was the 1099 threshold for 2025?

$600 for nonemployee compensation, rents, other income and medical payments made in 2025 (reported in early 2026). Royalties were $10 and attorney gross proceeds $600.

Will the $2,000 threshold change after 2026?

The IRS says the $2,000 threshold may be adjusted for inflation beginning in calendar year 2027. Check the current Instructions for Forms 1099-MISC and 1099-NEC each year.

Is the threshold "more than" or "at least" the amount?

At least. You report when total payments to the vendor for the year reach $2,000 or more for 2026 payments, so exactly $2,000 is reportable.

Do I send a 1099 to an LLC?

It depends on how the LLC is taxed, which the vendor states on its W-9. A single-member LLC that is a disregarded entity, or an LLC taxed as a partnership, is generally reportable. An LLC taxed as a C or S corporation is generally not, except for legal fees, attorney gross proceeds and medical payments.

Do payments by credit card or PayPal need a 1099-NEC?

No. Payments made by credit card, debit card or through a payment app or other third-party network are reported by the processor on Form 1099-K, so you do not include them on a 1099-NEC or 1099-MISC.

When is Form 1099-NEC due?

Form 1099-NEC must be furnished to the recipient and filed with the IRS by January 31 of the year after the payments. For Form 1099-MISC dates, see the IRS instructions.