Form 1099-NEC changes for 2026: three new boxes and a new threshold

• Box 1b (new): total cash tips included in box 1a.
• Box 1c (new): up to two Treasury tipped occupation codes; enter “000” as one of them if any tips came from a nonqualifying occupation.
• Box 1d (new): qualified overtime compensation included in box 1a, only the premium half.
• Payer and recipient addresses now have a separate box for each field.
• For tax years beginning after 2025 the information reporting and backup withholding threshold is $2,000, which may be adjusted for inflation from 2027.

The forms filed in early 2026 used the April 2025 revision, whose What’s New list had only two items: excess golden parachute payments move from Form 1099-MISC to Form 1099-NEC box 3, and the 10-return e-file threshold. The $600 threshold applied to 2025 payments.

HelloBooks tracks what each contractor is paid against the threshold for the payment year ($600 for 2025, $2,000 from 2026), keeps their W-9 details, and prepares federal and state 1099-NEC files in Combined Federal/State Filing format. Your firm or your filing agent then submits them; HelloBooks does not e-file directly with the IRS.