If your business pays independent contractors (non-employees) for services, you are required to file IRS Form 1099-NEC if the total payments exceed a specific threshold. For decades, this threshold has been $600 or more in a calendar year.  This threshold is about to change. Beginning with payments made in 2026, you file a Form 1099-NEC if you pay an independent contractor $2,000 or more during the year. In addition, starting in 2027, this amount will be adjusted annually for