The IRS has released its 2026 version of form 1099-NEC. The form reports non-employee compensation. There are a few changes to the form.
The preamble to the form has been updated to provide direction on when a form can be reported to the IRS and when it can be issued to a recipient during the tax year.
The form itself has several changes. The payer’s address field has been broken out with separate boxes for elements such as street address, city, and phone number. Previously these elements were reported in a unitary field on the form.
In addition, box 1 has been broken into several subfields. Previously, box 1 reported the gross amount of non-employee compensation paid to the payee. Now, that gross amount is reported in the new box 1a. New box 1b reports the tip income qualifying for the tip tax exemption. New box 1c reports the Treasury Tipped Occupation Codes (TTOCs) relevant for the reported tipped income. New box 1d reports the overtime compensation qualifying for the overtime tax exemption. Box 1b and 1d payments should be included with the gross payments reported in box 1a.
These changes to box 1 support new income tax exemptions from 2025’s One Big Beautiful Bill Act (“OBBBA”). The instructions for the 2026 form have not yet been released.
To review the 2026 1099-NEC, follow this link.
