The short answer: $2,000 for 2026 payments
For payments made in 2026, the reporting threshold for Form 1099-NEC is $2,000, according to the IRS page on whether you must file a Form 1099 (irs.gov). The instructions for Forms 1099-MISC and 1099-NEC say the same: file for each person you paid at least $2,000 in nonemployee compensation or attorney payments (IRS instructions). The old figure was $600, so a subcontractor you paid $1,200 over the year may no longer need a form.
For payments made after 2026, the IRS tells filers to see Publication 1099 for the inflation-adjusted threshold. So treat $2,000 as the number for the 2026 tax year and look up the next figure before you file for 2027 payments.
When the form is due
The IRS instructions say Form 1099-NEC is due on or before January 31, and that the same date applies to the copy you give the subcontractor. When January 31 falls on a weekend or legal holiday, the due date moves to the next business day. January 31, 2027 is a Sunday, so for payments made in 2026 the practical deadline is Monday, February 1, 2027. Confirm the date against the current instructions before you file.
Who needs a 1099-NEC, and who does not
- Subcontractors you paid $2,000 or more in 2026 for services, including a one-person electrical or HVAC sub, a permit runner or a freelance bookkeeper, generally get a form.
- Payments you made by credit or debit card, or through a third-party payment network, are reported by the payment company on Form 1099-K. The IRS instructions say they are not subject to reporting on Form 1099-NEC.
- Employees get a W-2, not a 1099-NEC. If a worker is really an employee, the threshold does not change that.
- Anyone you paid less than the threshold does not need a form, but you still need the records behind the deduction.
Which category a worker falls into is a tax question. Your tax professional makes that call, not your software.
Set up the January file in October
The painful version of this is a January scramble through bank statements. The easy version starts now, while the year is still open:
- List every subcontractor and vendor you paid for services in 2026, and total what you paid each one so far.
- Collect a Form W-9 from each one that is near or over $2,000. It is much easier to ask in October than to chase someone in February.
- Sort card payments out from checks and bank transfers, since only the latter belong on a 1099-NEC.
- Match each payment to the job it was for, so you can see which payments are job costs and which are overhead.
FSM Navigator does not file 1099s and does not track what you pay your subcontractors. What it gives you is the job side of the story: who worked which job, when, and what the job cost and billed, which makes the last bullet easier. See job profitability on Pro and Enterprise, and scheduling for how jobs and crews are assigned.
A checklist you can finish this week
- Pull a 2026 payments list by payee.
- Flag everyone at or above $2,000.
- Request a W-9 from each one you do not have on file.
- Put the Monday, February 1, 2027 deadline on the calendar, and ask your accountant whether they will file for you.
This article is general information, not tax advice. Confirm your situation with a qualified tax professional.
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Frequently Asked Questions
What is the 1099-NEC threshold for 2026?
For payments made in 2026, the IRS reporting threshold for Form 1099-NEC is $2,000 in nonemployee compensation or attorney payments. It was $600 before. For payments made after 2026 the IRS refers filers to Publication 1099 for the inflation-adjusted threshold.
When is the 1099-NEC due?
On or before January 31, for both the IRS copy and the copy to the recipient. When January 31 falls on a weekend or legal holiday the due date moves to the next business day, which makes it Monday, February 1, 2027 for payments made in 2026.
Do card payments to subcontractors go on a 1099-NEC?
No. The IRS instructions say payments made by credit or debit card and certain third-party network payments are reported by the payment company on Form 1099-K and are not subject to reporting on Form 1099-NEC.
Does FSM Navigator file 1099s?
No. FSM Navigator does not file 1099s and does not track payments to your subcontractors. It keeps the job records, who worked each job, and job profitability on Pro and Enterprise.