Form 1099-K and Forms 1099-NEC & MISC Updates

Amy Swenson | 07.25.25

Form 1099-K is issued for payments received for goods or services during a year from credit, debit, or stored value cards and from payment apps or online marketplaces.

The threshold for 2025 was set to be $2,500, creating what many thought to be a burden on businesses. The OBBB has modified this requirement so that the forms are only required to be issued to recipients if the amount of such transactions exceeds $20,000 and the aggregate number of such transactions exceeds 200. This new threshold is effective for the calendar year ending December 31, 2025.

Forms 1099-NEC & 1099-MISC are issued by businesses to someone who is not an employee to report payments for services, rent, and other income items (see form instructions for a full list) over a total of $600. Dashing the hopes of most who work on issuing 1099s, the threshold for 2025 is unchanged at $600 but will increase to $2,000 for payments made after December 31, 2025. This new threshold also applies to backup withholding requirements. The threshold will be increased by a cost-of-living adjustment or at least $100 starting in 2027.

Please contact your Boyum advisor with any questions.

Meet the author

Amy Swenson

Amy is a Senior Tax Manager in our Arden Hills office and enjoys working with a wide variety of clients.

After graduating from the Carlson School of Management, she spent almost 10 years with a Big Four firm until she made the decision to stay home with her three kids. She finally realized she actually missed public accounting and in 2018 dove back in.

Form 1099-K and Forms 1099-NEC & MISC Updates

Meet the author

Amy Swenson

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