The 1099 threshold just changed and that could mean less paperwork for your business in 2026.

The new $2,000 threshold

Beginning with payments made in 2026, the federal reporting threshold for certain payments reported on Forms 1099-NEC and 1099-MISC increases from $600 to $2,000.

For small businesses and short-term rental owners, that may mean fewer 1099s to issue. It does not mean you can stop tracking vendor payments.

What should you do now?

• Keep an updated vendor list.

• Collect W-9s from qualifying vendors.

• Track payments by vendor throughout the year.

• Watch for vendors approaching $2,000.

• Keep receipts and payment records organized.

• Remember that different types of 1099s can have different reporting rules.

Why STR owners should pay attention

STR owners often pay cleaners, handymen, landscapers, photographers, maintenance providers, and other contractors.

Those payments can add up quickly. Tracking them throughout the year makes it much easier to see which vendors cross the $2,000 threshold and which don't.

Practical example

You pay your STR cleaner $175 per turnover throughout 2026. By the end of the year, you've paid that cleaner $2,450.

Because the total exceeds $2,000, you would generally need to issue a 1099-NEC, assuming the other reporting requirements are met.

Another contractor receives $1,400 for qualifying services during 2026. The new federal threshold generally means you would not issue a 1099-NEC based solely on those payments.

Common mistakes/questions

Do I still need to track payments under $2,000?

Yes. A vendor who is under the threshold today could cross it later in the year.

Is $2,000 the threshold for every 1099?

No. Different 1099 forms have different reporting requirements.

Can I wait until tax season to figure this out?

You can, but missing W-9s and incomplete payment records can make year-end reporting much harder.

How EverLume Can Help

At EverLume, we help small businesses and STR owners keep their books organized throughout the year so year-end reporting doesn't become a scramble.

We can help track vendor payments, keep records organized, and identify potential 1099 recipients before deadlines arrive. The new threshold may mean fewer forms, but good bookkeeping still makes tax time easier.