The threshold you are tracking toward
For payments made from January 1, 2026, the 1099-NEC and 1099-MISC threshold is $2,000, so the first forms affected are filed in early 2027. The $600 threshold still applies to 2025 payments.
Track 1099 Vendors All Year, Not in January | HelloBooks How to track 1099 vendors all year: W-9 before first payment, running totals against the threshold, and a monthly exception check so January is only a review.
Efficiency · 1099 tracking
1099 vendor tracking all year (not in January)
The January 1099 scramble is a tracking problem, not a filing problem. Collect the W-9 before the first payment and watch totals monthly, and January becomes a review.
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Smarter accounting for growing businessesNew vendors
- W-9 received before first payment
- Vendor marked 1099-eligible or not, with reason
Running totals
- Contractors approaching the threshold
- Payments coded to the right 1099 type
Exceptions
- Missing or mismatched TINs
- Vendors paid by card or payment app, noted separately
W-9 first
Collecting the W-9 before paying means you have the TIN and legal name at filing time. HelloBooks only marks a vendor 1099-eligible once a W-9 is on file, which puts the gate where it belongs.
Make it a monthly line item
Add the 1099 check to the monthly bookkeeping checklist. Contractors near the threshold and vendors with missing W-9s are the only items that need attention; everything else is already tracked.
FAQ
Frequently asked questions
- Do payments by card or payment app count?
- Check the Instructions for Forms 1099-MISC and 1099-NEC for how payments made through payment card or third-party networks are treated before including them.
- Does the new threshold apply to 2025 forms?
- No. Forms for 2025 payments still use $600. The $2,000 threshold starts with payments made in 2026.
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Every federal change for the 2025 and 2026 seasons
Sources
- Instructions for Forms 1099-MISC and 1099-NEC — checked 2026-10-10
- Rev. Proc. 2025-32 — checked 2026-10-10
General information for tax and accounting professionals, not legal advice. Rules are summarised from the primary sources listed on the date shown; read the current text before relying on it.
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