Filing Form 1099: A Quick Update for 2025
Businesses are preparing their year-end reporting, and Form 1099 requirements continue to draw close attention. The IRS has made a few notable updates for 2025, and it helps to keep the basics in clear view as you plan your filings.
The core rules in the General Instructions for Certain Information Returns remain steady. If you pay non-employees or service providers at least $600 during the year in the course of your trade or business, a Form 1099 NEC is generally required unless specifically exempt. Additionally, payments of at least $600 per year for rent, certain prizes/awards, medical & health care payments, and other income are reported on Form 1099 MISC. Royalty payments of more than $10 per year are also reported on Form 1099 MISC. The instructions also continue to stress timely filing and accurate taxpayer information to avoid penalties and also outline the exemptions for the requirement to issue a Form 1099 to a recipient.
For most businesses, the takeaway is simple. Review your vendor payments, confirm W-9s are on file, and check whether any new activity falls under the updated guidance. If something feels uncertain, a quick conversation can help sort it out.
If you have questions about your upcoming 1099 filings or want help reviewing your reporting process, feel free to reach out.
For 2026, reporting thresholds for Form 1099 will be updated from payments of at least $600 per year to at least $2,000 per year, and will be adjusted for inflation annually for years 2027 and beyond.
Sources:
IRS, General Instructions for Certain Information Returns, 2025.
https://www.irs.gov/instructions/i1099gi
IRS Notice 2024-85, Transition Relief for Form 1099-K (Nov 2024).
https://www.irs.gov/irb/2024-51_IRB#NOT-2024-85
IRS News Release IR-2024-204, Draft Form 1099-DA Released (Sept 2024).
https://www.irs.gov/newsroom/irs-updates-draft-version-of-form-1099-da
Disclaimer:
This article is for general informational purposes only and should not be considered tax or legal advice. Situations can vary, and requirements may change as additional IRS guidance is released. For guidance specific to your organization, please contact the qualified professionals at Brady Martz.
Elements of this article were generated with the assistance of AI-enabled drafting tools. The final version has been carefully reviewed by Brady Martz professionals to ensure it reflects our standards of quality and accuracy.
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