1099 Threshold Checker

What this tool checks

The tool applies the correct 1099-NEC filing threshold for the payment year and state you enter, and compares it to the payment amount:

• Federal threshold — tax year 2026 and beyond: $2,000 per contractor per year (One Big Beautiful Bill Act, Pub. L. 119-21).
• Federal threshold — tax year 2025 and earlier: $600 per contractor per year (pre-OBBBA rule).
• State-level floors: A handful of states kept a lower state threshold even after OBBBA. The tool applies the lower of the two to tell you whether any 1099 is required.
• Filing deadlines: 1099-NEC is due to both the recipient and the IRS by January 31 of the year following payment.
• Penalty schedule: Late-filing penalties per Rev. Proc. 2025-32 — up to $340 per form for filings more than 30 days late, higher for intentional disregard.

Why we built this

The 1099-NEC threshold changed for the first time in 70 years. Most existing calculators still hard-code the old $600 figure, which gives flat-out wrong answers for any 2026 payment. This tool reflects the current law (OBBBA Pub. L. 119-21) and the two confirmed state-level holdouts (California and Massachusetts), with the IRS penalty schedule from Rev. Proc. 2025-32 baked in so you can see the cost of being late at the same time.

Related tools

• All free 1099 tools
• W-9 Validator — catch invalid TINs before you file
• NEC vs MISC decision tree — pick the right form and box
• 1099 Penalty Calculator
• OBBBA Law Changes 2026