The new bill just signed into law on July 4, 2025 (“Big Beautiful Bill”) includes two little-known changes in tax form reporting. One change is regarding the 1099-K tax form and goes into effect for year 2025 and beyond (ht reader calwatch). The other is regarding the 1099-MISC tax form and goes into effect for year 2026 and beyond.
- Form 1099-K is only required to be issued for someone who receives $20,000 in revenue AND 200+ transactions. This is how it was all the years, until a few years ago when they started changing it – we wrote about that in this prior post.
- Form 1099-MISC is only required to be issued for someone who receives payment of $2,000. That’s instead of the prior threshold of $600 which we’ve had all the years. This begins in 2026 and affects tax forms for earnings from small gigs and the like. (In 2027 on onward, the $2,000 threshold will be adjusted for inflation.)
- Note: 1099-INT reporting requirement of $10 has not changed. That’s the form used for interest earned from banks and what’s usually for bank account bonus reporting. Brokerage bonuses are typically 1099-MISC, and so those could be affected by the change to make the required reporting amount $2,000. Referrer bonuses (e.g. from Chase and Amex) are also 1099-MISC and could be affected. The change would affect bonuses earned in 2026, meaning, the tax forms which are sent out in 2027 and beyond.
You can find the full bill here, look for section 70432 and 70433. Here’s another article from a congress committee with a summary of the 1099-MISC change.
As we’ve said many times before: tax forms have no effect on actual tax liability. They are just reporting mechanisms.
Note, there are a few states that have other tax reporting laws, and so it’s difficult to really know when you’ll get a 1099. The stated reporting amounts are just requirements, and a business or financial institution can issue a tax statement at lower levels if they choose. (If you never gave in your SSN/EIN, it’s pretty safe to assume your won’t get a tax form.)
Update: Comments now closed as it’s devolved into political drivel. A lot of it from commenters that don’t generally comment on the site
Exactly, they have delayed the federal change every year so far. It’s states that have been imposing it and it doesn’t seem like it’s going away
“I t just means you are less likely to get a form to help you keep track of it.” So the purpose of the form is just to help people keep track of things, like an act of charity? You’re right, why would anyone have an issue?
Note how you didn’t actually respond to anything that I said. You just ignored it and brought up tangential points relying on the misconception that the Democratic party of the Civil war era was in any way comparable to the contemporary Democratic party. A little research will show that, at that time, the Democratic party was the conservative party. Lincoln, a republican, was as liberal as our presidents come.
The “go to college” for a chance at a better career and future has been pitched to young people for decades. But there were never any guarantees. The outcome depends on many factors: job opportunities and growth in CHOSEN area of study; market demand for particular skills; personal drive, focus, and sacrifice for achievement over leisure; and yes even luck. The message wasn’t, “Go to college and here is your high-paying job.” If you were pitched that message by your parents, educators, universities, advertising, etc. then you were misled. Take it up with them for bad outcomes, don’t blame it on taxpayers, many of whom didn’t even have a chance at higher education. The taxpayers subsidized the financing for that education, they have no control over area of study and individual outcomes. As for taking on loans as an 18 year old, where were the parents in guiding this important financial decision? What liability should parents have for pushing their kids into crazy debt, especially for certain degrees with questionable job prospects? If graduates feel betrayed or misled, go sue the university for false advertising or for a faulty product. If I borrow money to buy a new car and the car has problems, I’m going after the car dealership and manufacturer, not the bank where I got the auto loan, and certainly not the taxpayer. It is a harsh lesson of life and people obviously don’t want to hear it or have accountability: students picked the degree, students signed the papers that said loans would be paid back. Students didn’t sign a loan agreement that said, “If things don’t go your way, you can offload the loans to taxpayers and you can skate.” Your debt is not my problem. My debt is not your problem. I don’t know what kind of education makes people believe otherwise.
What are you going on about? Our political system is crap but there is one side that is clearly a deranged leftist cult.
Havent seen a Democrat get so worked up since the Republicans freed the slaves. But keep going to that racial well, because those horrors lay at the feet of Southern Democrats with a straight line to KKK leader Robert Byrd, who the Clintons, Obama, and other Democrats lionized in 2010. Oh, and what is a woman? Your Biden Supreme Court justice cant even answer that, because she “wasn’t a biologist” LOL Even she is afraid of the cult in the face of obvious science.
this site does have RSS feeds that are broadly categorized, but I think it’s just a little bit more burden on the author to categorize them to a feed I use feedly to keep track of posts ive seen vs new ones
If the restaurant has a policy about sharing tips with BoH, then that happens regardless of cash/charge tips, unless the server conceals the cash (which is a whole different ethical dilemma). Owners/managers taking a share of tips is illegal under the FLSA and has been since 1938.
I have no idea as I don’t really think about this topic until it’s brought up like it was in this post. However, it wouldn’t surprise me if there are a significant amount of people like that. Didn’t you see how many scammers tried to take advantage during the Covid-19 pandemic? In case you are not aware, there are a bunch of truly horrible people in the world. In fact, some of them have commented in this very post!
As noted by PJ — The $20k/200 change is retroactive, and applies to payments from calendar year 2022 onwards.
You are correct. The $20k/200 change is retroactive, and applies to payments from calendar year 2022 onwards.
Mike Nagel If you got a 1099-k last year for just over $600, it was probably your state requirements. Federal minimum wasn’t that low. State requirements won’t be changing,
Now this is the content Dad comes here for. Dad is happy. Dad was not pleased that he had to dig through 2 pages of posts about regional banks offering bonuses in timbuktoo to find this.
So which side is centered around a leader with extreme views who demands unwavering loyalty based around an us vs. them mentality, and whose followers venerate him as a god who can do no wrong no matter how fucked up of things he says and does? And before you say “both sides have an us vs. them mentality,” yes, there is some us vs. them on both sides. But the difference is that, for the left, “them” means “republicans.” For the right, “them” means “democrats, immigrants, muslims, jews, gay people, trans people, and nonwhite people” (and I’m sure some other groups as well).
Is there any reporting about a significant number of such people existing? The only reason I can think of that someone would do that is if they had been aiming for another form of loan forgiveness, such as the PSLF.
I thought that part where it mentions the year after 12/31/24 for effective date only applied to section b relating to withholding. For section a, under effective date, it doesn’t say the year after 12/31/24. It says effective date shall take effect “as if included in section 9674 of the American Rescue Plan Act”. All that said, I am almost sure that this applies for tax year 2025. It wouldn’t make sense that section a and section b would start in different years.
You shouldn’t assume that I’m applying that label just because someone is “against my own ideology.”
Why? As it says in the post, it doesn’t change your tax liability in any way. Only how it is reported.
You are not alone lol, guess late 20’s is the new mid 50’s.
It is less burdensome for 1099 filers.
Aww how cute the Tv taught him a new talking point. “Magat bullsheet” Definitely pure independent thought here folks. Came up with it all by himself. What a big boy! This is beyond parody lol
I’ve never thought of this angle! I still think on the whole cash tips are better for servers but I haven’t carried cash in a decade.
Don’t forget about the 200 transaction minimum that they added back also.
Andie , You made 2 horrible comparisons to the student loan attempted bailout, with the “disabled people” example being especially bad. You basically compared apples to oranges. In fact, your comment is almost, but still not quite as bad, as this gem: #2093034 .
It sounds like you are the one with jealousy issues with your line “ they are still just commoners compared to the people really running things “.
Am I the only one that had to Bing “jannies”?
What a sad, pathetic little bootlicker you are.
The national debt is an everyone else problem. The republicans don’t give a flying fck about it.
It’s also very unfair that we have to read your idiotic posts.
His children are Ben Franklin and his 70,000 twin brothers.