Article Date:
August 2025


Word Count:
1321

 

 

OBBBA’s New 1099 Filing Rules


The IRS requires that information returns on Form 1099-NEC be filed when payments above a certain threshold amount are made by businesses to independent contractors.

 

Payments processed by third-party settlement organizations such as PayPal must report on Form 1099-K if over a threshold.

 

The One Big Beautiful Bill Act (OBBBA) changes the thresholds for filing these forms, which will result in far fewer being filed.

 

New $2,000 1099-NEC Filing Threshold

 

Currently, if a business pays an unincorporated independent contractor (non-employee) $600 or more for services during the year by check, cash, or direct deposit for business-related services, it must file IRS Form 1099-NEC, telling the IRS how much it paid the contractor.1

 

The form must also be filed when a lawyer or physician is paid $600 or more for business-related professional services, even ... Log in to view full article.

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