The IRS has released its 2026 instructions for forms 1099-MISC and 1099-NEC. The agency has made a number of changes.
Most prominently, there are several changes resulting from the 2025 budget reconciliation. The instructions now reflect a general reporting threshold of $2000 or more, up from $600 in 2025; the new threshold will be inflation-adjusted in future years. In addition, the form adds boxes 13a (form the MISC) and box 1b (NEC), reporting qualified cash tips; box 13b (MISC) and box 1c, reporting the Treasury Tipped Occupation Code; and box 14 (MISC) and box 1d (NEC), reporting qualified overtime compensation (with other boxes renumbered accordingly). These new boxes support the tax exemptions for tips and overtime introduced by the budget reconciliation. The instructions provide directions for each of these new boxes.
In addition to the above changes, the instructions also note some presentation changes to the form. The prior unitary address field has been broken out into individual boxes for each element of the recipient’s address. In addition, the FATCA requirement indication on form 1099-MISC has been changed from being box 13 to being an unnumbered check box.
To review the 2026 Instructions for Forms 1099-NEC and 1099-MISC, follow this link.
