The One Big Beautiful Bill Act (OBBBA) changes reporting thresholds for Forms 1099-K, 1099-MISC and 1099-NEC. These changes will reduce the number of forms required, lowering the amount of administrative work required by businesses and individuals. However, even if you don’t receive one of these forms, you must still report your income.
1099-K
The OBBBA reinstates the previous reporting threshold for third-party businesses like Etsy, PayPal and Venmo to $20,000 and 200 transactions. This means companies must report payments for goods and services processed by credit cards, online marketplaces or payments apps exceeding $20,000 and 200 transactions. The change is retroactive to 2022, reversing the previous threshold of $600 with no transaction minimum.
1099-MISC and 1099-NEC
1099-MISC and 1099-NEC reporting thresholds for businesses paying independent contractors or reporting other miscellaneous income will also see some changes. Beginning with tax year 2026, the reporting threshold will be raised from payments of $600 or more to payments of $2,000 or more. The $2,000 threshold will be adjusted annually for inflation starting with tax year 2027.
If you have questions about your payment reporting requirements or want to understand the changes made in the OBBBA, contact your RKL advisor today.
