Still Using the $600 1099 Rule? That May Be Outdated for 2026

[William Thompson]

I’m a little surprised more investors aren’t talking about this.

A lot of rental owners are still running on the old $600 1099 rule, but for payments made in 2026, the federal threshold for certain 1099-NEC and 1099-MISC reporting increased from $600 to $2,000. The IRS also says the federal 1099-Kthreshold is back to more than $20,000 and more than 200 transactions.

Why does that matter?

Because a lot of investors are paying cleaners, handymen, bookkeepers, and admin help, but haven’t gone back and updated how they’re tracking this stuff.

This is one of those small tax moves that can save headaches if you catch it early.

Curious how others are handling it. Are most investors still using the old $600 number out of habit, or have you already updated your process for 2026?