New 1099 threshold

@grassrootstaxes

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Grass Roots Taxes

Welcome to Grass Roots Taxes with Diane Hagerty! Learn about difficult tax situations and how to navigate them with our tax knowledge base.

2 videos

Why it worked

The video addresses a common pain point for small businesses and freelancers by announcing a favorable change in tax regulations. The creator's relatable explanation and clear call to action make the information valuable and actionable.

Summary

The video announces that the 1099 threshold for reporting payments to independent contractors is increasing from $600 to $2,000 for the 2026 tax year. The creator highlights that the $600 threshold has been in place since 1958 and is no longer reflective of current economic conditions.

Structure

1Introduction of the new 1099 threshold change.
2Explanation of the old $600 rule and its historical context.
3Comparison of the 1958 value of $600 to current pay.
4

Original caption

1099 threshold 2026 update: the $600 rule is finally going to $2,000. Still get W-9s early. #1099 #SmallBusinessTaxes #TaxTips #Bookkeeping #GrassRootsTaxes

More from @grassrootstaxes

Product placement

1099 rule: This is a tax form that businesses use to report payments made to independent contractors. The video discusses the threshold for when this form must be issued. This form ACTS as a reporting requirement, and removing it would change how taxes are reported. Grass Roots Taxes: This is the name of the creator's business, which provides tax services. It APPEARS as a watermark/logo and is spoken. Removing it would not change what happens in the video.

Call to action

Don't forget to get W9s from your contractors that you pay over $2,000 a year.

On-screen text

New 1099 threshold TAKES

Transcript

The $600 1099 rule is finally changing. And honestly, it should have happened a long time ago. Hey everybody. Diane Hagerty, Grassroots Taxes talking about the new 1099 threshold for this year. For 2026, the threshold for sending somebody a 1099 you is going from $600 to $2000. Yay! That $600 rule has been there since when? When? 1958. That rule has been in place since 1958. In 1958, $600 was about two months pay. Now it's less than one week's pay. If the 1099 rule with inflation, that rule would be $7,000. Today. 7000. And yet out 1099s for $600 who are making a couple bucks doing this the side. poor people and causing a lot of paperwork. It is absolutely time to stop burying small businesses and paperwork and raise that limit for 2026. It has gone up to $2,000. Small business Don't forget, to get W9s your contractors that you pay over $2,000 a year. But the threshold is finally going up. Less paperwork. And you know what? I'll see you at tax time.

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