August 24, 2026
1099 Threshold Update
New for 2026 year-end: the threshold for tax reporting on 1099 vendor obligations has been changed.
With the “One Big Beautiful Bill Act,” the new law states that the threshold for reporting on form 1099-NEC and 1099-MISC increased from $600 to $2,000. This increase in payment number means some vendors may not require reporting income to the IRS, come year-end.
Documentation
But, it is still IRS best practices to have accurate forms for all vendors. Those forms can be found on our Resources page. Along with the 2026 version of our 1099 Information white paper. And the link to the IRS Form W-9 and instructions on how to fill out the form properly. MM also provides a template letter for your organization to utilize when requesting a vendor fill out the proper paperwork.
As you may have guessed by our insistent request for backup documentation, proper vendor documentation is no different. It keeps everyone compliant and above board.
Vendor Check
For MM clients, we sent a memo in June 2026 detailing the impact of this new threshold. Towards the beginning of the year-end season, we have a check on all vendors that might possibly require a 1099. This year’s list may look different and we wanted to make you aware ahead of time.
For clients that came on our service in the 2026 year, we had a second request that you check your list from the whole year to make sure no vendor was left off our possible 1099 list. We like to do a mid-year check to help mitigate some of the the paperwork during year-end surrounding these vendors.
Any time you have questions regarding 1099 vendors, your Client Services Representative is the best place to start.
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