Form 1099 for Landlords in 2026: The New $2,000 Threshold
From 2026, a landlord files Form 1099-NEC or 1099-MISC only for payments of $2,000 or more. Who you file for, the deadlines, and when a W-9 matters.
By Seayora Editorial Team · Published · Facts checked · 3 min read
Short answer: For payments made in 2026, a landlord whose rental activity is a trade or business files Form 1099-NEC for each unincorporated contractor paid $2,000 or more for services, up from $600, and Form 1099-MISC for rents of $2,000 or more. The threshold will be adjusted for inflation from 2027. Form 1099-NEC is due to the contractor and the IRS by January 31, and payments by card or payment app are reported by the processor on Form 1099-K instead.
Key takeaways
- The One, Big, Beautiful Bill raised the threshold from $600 to $2,000 for payments made after December 31, 2025.
- Payments to corporations are generally exempt, but payments to attorneys are not.
- Card and payment-app payments go on Form 1099-K from the processor, not on your 1099-NEC.
- Collect a Form W-9 before you pay, so the 1099 is easy in January.
What changed for 2026?
Section 70433 of the One, Big, Beautiful Bill Act raised the reporting threshold in Internal Revenue Code § 6041 from $600 to $2,000 for payments made after December 31, 2025, and indexes it for inflation for calendar years after 2026 (IRS Bulletin 2026-19). The IRS’s 2026 instructions apply the $2,000 figure to nonemployee compensation on Form 1099-NEC and to rents on Form 1099-MISC (Instructions for Forms 1099-MISC and 1099-NEC). Payments made in 2025 still used $600.
Does a landlord have to file 1099s?
The instructions say to file “only when payments are made in the course of your trade or business,” and that you are engaged in a trade or business if you operate for gain or profit. Personal payments are not reportable. Whether a small rental is a trade or business depends on the facts, so many landlords simply file for every qualifying payment; Schedule E also asks whether you made payments that would require Forms 1099.
Who do you file for?
| Payment | Form | Threshold |
|---|---|---|
| Plumber, painter, handyman, cleaner or other unincorporated contractor (labor, including parts and materials) | 1099-NEC, box 1a | $2,000 |
| Attorney’s fees, including to a law firm that is a corporation | 1099-NEC, box 1a | $2,000 |
| Rent you pay for office or storage space | 1099-MISC, box 1 | $2,000 |
| A property manager paying rent over to the owner | 1099-MISC, box 1 (filed by the manager) | $2,000 |
| Gross proceeds paid to an attorney, such as a settlement | 1099-MISC, box 10 | $600 |
You generally do not file for payments to corporations (including an LLC taxed as a corporation), for merchandise, or for rent paid to a real estate agent or property manager, who reports it to the owner instead.
What about payments by card or payment app?
Payments made with a credit card, debit card or a third-party network are reported by the payment settlement entity on Form 1099-K and are not reported by you on Form 1099-NEC or 1099-MISC. The 1099-K threshold returned to more than $20,000 and more than 200 transactions (IRS 1099-K FAQs).
When are they due?
| Form | To the recipient | To the IRS |
|---|---|---|
| 1099-NEC | January 31 | January 31 |
| 1099-MISC | January 31 | February 28 on paper, March 31 electronically |
If a date falls on a weekend or legal holiday, it moves to the next business day. Businesses filing 10 or more information returns in total must file electronically; the IRS’s free Information Returns Intake System (IRIS) accepts them (Publication 1099). Seayora prepares the IRIS file for you to upload; see filing 1099s through IRIS.
Why collect a W-9?
Form W-9 gives you the contractor’s legal name, tax classification and taxpayer identification number. If a payee does not provide a TIN, you may have to withhold backup withholding at 24% on reportable payments. Asking for the W-9 before the first payment is far easier than chasing it in January.
Frequently asked questions
I paid my handyman $1,800 in 2026. Do I need a 1099-NEC?
No. For payments made in 2026 the threshold is $2,000. For 2025 payments it was $600.
Do I file a 1099 for a plumbing company that is an LLC?
It depends on the LLC’s tax classification on its Form W-9. An LLC taxed as a C or S corporation is generally exempt; a single-member or partnership LLC is not.
Does my property manager file 1099s for me?
Often, if they pay vendors on your behalf from your funds and perform management functions over the payments. Confirm in your management agreement.
Sources
- Internal Revenue Bulletin 2026-19 (OBBBA § 70433 threshold change), IRS
- Instructions for Forms 1099-MISC and 1099-NEC (12/2026), IRS
- Publication 1099 (2026), General Instructions for Certain Information Returns, IRS
- IRS issues FAQs on Form 1099-K threshold under the One, Big, Beautiful Bill, IRS
How Seayora helps
Property management accounting: Tracks what you paid each vendor, collects W-9s and prepares the 1099 file for the IRS’s IRIS portal.
This article is general information, not tax advice. Tax rules change and your situation is your own, so confirm the treatment with a CPA or enrolled agent before you file.
How we write and check these guides: editorial standards.
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