Q. "What do I need to know about the new $2,000 1099-NEC rule?"
Answer:
The required filing threshold for Form 1099-NEC is increasing from $600 to $2,000 for all payments starting in 2026. This change significantly simplifies year-end administration for churches and ministries, meaning you will file far fewer forms for small service providers like guest speakers, professional musicians, or occasional consultants.
However, three compliance rules remain critical for good stewardship:
Get a W-9: Get a completed W-9 form from every independent contractor before payment, regardless of the amount.
Keep Records: Still track all payments internally. The recipient may owe tax on the income, even if they don't get a 1099.
The Date: The new $2,000 rule starts with payments made after December 31, 2025. You must use the old $600 rule for your 2025 payments (filed in early 2026).