The 1099 Rule Just Changed: What the New $2,000 Threshold Means for Creators
If you make money as a creator, you've probably heard the word "1099" thrown around, usually in a slightly panicked tone around January. The rules around it just changed, and the change touches you in two different ways: when you get one, and when you're required to send one. Before we get into the change itself, let's make sure the basics are clear, because most creators have never had anyone explain this in plain English.
What Is a 1099, Actually?
A 1099 is a form that reports money someone paid you during the year. If you had a regular job, your employer would send you a W-2, which shows what you earned and what was already taken out for taxes. When you're self-employed, nobody's taking anything out, so instead of a W-2 you get a 1099, which just says "here's how much we paid you." A copy goes to you and a copy goes to the IRS, so they can see what you were paid too.
There are a few different versions, and which one you get depends on who's paying you and how:
1099-NEC ("nonemployee compensation") is for when a business pays you for work you did as a non-employee. Think brand deals, sponsorships, and UGC work.
1099-MISC covers other kinds of income, like royalties or prizes.
1099-K comes from payment processors and marketplaces (think PayPal, Stripe, or a shop platform) that report the payments they processed for you.
How This Shows Up for Creators
Say you make money on YouTube. Google will typically issue you a 1099 for your AdSense earnings, and it usually arrives in January (or thereabouts) covering the previous year. Other platforms work the same way. Twitch, Kick, and Patreon may each send you their own form, and every brand or agency that paid you over the threshold should send one too. So one creator can easily end up with five or six different 1099s from five or six different places, all covering income that gets combined into one tax return.
The exact form type can vary by platform and by how you're paid, so when yours shows up, look at which form it is rather than assuming. If you're not sure what a form means or why you got it, that's a good question for your accountant.
What Actually Changed
The rule used to be that if a business paid you $600 or more during the year, they had to send you a 1099-NEC. Starting with payments made in 2026, that number is now $2,000. Payments made before 2026 still follow the old $600 rule, and after 2026 the number is expected to adjust for inflation.
In practice, a brand that paid you $900 for a sponsored post would have been required to send you a form under the old rule. Under the new one, they're not, because $900 is under $2,000.
One caveat: some platforms and companies may keep sending forms at lower amounts, since the threshold is when they're required to, not a ban on sending them sooner. Don't count on receiving a form or on not receiving one.
The Part That Did Not Change: You Still Report Everything
This is the most important part of this post. A 1099 has nothing to do with whether your income is taxable. The threshold is a rule for the business paying you, about when they have to send paperwork to the IRS. It was never a rule about when you owe tax.
So if a brand pays you $900, doesn't send a form, and you don't report it, you've left income off your return. Same goes for a $50 affiliate payout, a tip from a livestream, or a small collab paid through Venmo. Every dollar counts, whether or not a form exists.
The new threshold actually makes this more of a trap than it used to be. You're going to get fewer forms than before, so an empty inbox in January means even less than it used to. The only way to know what you really earned is to track it yourself throughout the year, which is exactly what our free income and expense tracker is for. Grab the free tracker here!
If You Pay People: Editors, Mods, VAs, Designers
Now flip it around. If you've hired an editor, a moderator, a virtual assistant, a thumbnail designer, or anyone else who works for you but isn't your employee (they're a contractor, meaning they run their own business and you just pay them for their work), then you're the one who sends the 1099-NEC.
The old rule was $600 per contractor per year. The new rule for 2026 is $2,000. So if you paid your editor $5,000 over the year, they get a 1099-NEC from you. If you paid a designer $800 for a few thumbnails, you're not required to send one anymore.
A few practical things to know:
Track what you pay each person. Your obligation kicks in once you cross $2,000 with someone, and it's easy to lose track partway through the year.
Collect a W-9 up front. It's a simple form where your contractor gives you their legal name, address, and tax ID, which you'll need to fill out their 1099. Getting it when you first hire someone saves a scramble in January.
Know the deadline. 1099-NECs for 2026 payments are due in early 2027. January 31 falls on a Sunday that year, so the real deadline slides to Monday, February 1.
Don't skip it if you're required to send one. Penalties for failing to file can apply, and they generally grow the longer you wait.
The Short Version
If you receive money: fewer forms may come your way, but you owe tax on all of it regardless.
If you pay people: you only need to send a 1099-NEC once you've paid someone $2,000 or more in 2026, but keep track of each person's total so you don't miss it.
The rule changed the paperwork trigger. It didn't change what you owe or what you owe the people you hire.
Frequently Asked Questions
Does the new $2,000 threshold mean I owe less tax?
No. The threshold only decides when a business has to send a form. Your income is taxable whether or not a form is ever issued.
If a brand doesn't send me a 1099, do I still report that income?
Yes. Every dollar of creator income goes on your tax return, forms or not.
Will YouTube or Twitch still send me a 1099?
Platforms that pay you above the reporting threshold are required to send one, and some may send forms at lower amounts too. Either way, track your own income so you're not relying on a form to tell you what you made.
I pay an editor $1,500 a year. Do I need to send them a 1099?
For payments made in 2026, not under the new $2,000 threshold. Keep a record of the payments anyway, and if the total crosses $2,000 before the year ends, the requirement kicks in.
What's a W-9 and do I need one?
A W-9 is the form a contractor fills out so you have their name, address, and tax ID for filing a 1099. It's best to collect one before you pay them the first time.
Is $2,000 permanent?
Not necessarily. After 2026 the threshold is expected to adjust for inflation, so check the current number each year.
What if I'm not sure which form I received or why?
That's a good question for a creator-focused accountant, since the form type can affect how the income is reported.
Still Not Sure What Applies to You?
Whether you're waiting on forms from platforms or sending them to your own team, the new threshold changes the paperwork but not your obligations. Book a free call with Game On Financial and we'll make sure your income is tracked and your contractor payments are handled correctly.
