What's Changing for 1099 in 2026 and How API v2.0.0 Helps
Most years, a 1099 update means one new box and a quick read of the instructions. The 1099 changes for tax year 2026 ask for more: a higher reporting threshold, new fields for tips and overtime, renumbered boxes on 1099-R, and a different IRS system for electronic filing.
If you build or run software that files 1099s, these updates land all at once and touch both your data model and your filing flow. Some forms barely move, and a few change quite a bit.
This post covers what is changing, how TaxBandits API v2.0.0 supports each change form by form, which forms stay the same, and what the shift from FIRE to IRIS means for your integration.
What are the 1099 changes for tax year 2026?
Tax year 2026 brings six major changes to 1099 reporting. Here is each one in brief:
- Higher reporting threshold. The threshold for Forms 1099-NEC and 1099-MISC rises from $600 to $2,000 for payments made in 2026. Backup withholding follows the same new threshold.
- Tips and overtime fields. Forms 1099-NEC, 1099-MISC and 1099-K get new fields that support the No Tax on Tips and No Tax on Overtime provisions, including Treasury Tipped Occupation Codes (TTOC).
- Digital asset reporting. Form 1099-DA adds basis reporting for covered securities, and Form 1099-S gains boxes for digital asset proceeds.
- A reworked 1099-R. Boxes 7 and 8 are renumbered, two new boxes cover Trump accounts and earnings on excess contributions, and distribution code Y is added.
- Family leave benefits on 1099-G. A new box reports benefits paid by state paid family and medical leave programs.
- IRIS-only e-filing. The IRS retires the FIRE system, and the Information Returns Intake System (IRIS) becomes the only way to e-file these returns.
How does TaxBandits API v2.0.0 handle the 1099 changes?
API v2.0.0 carries the tax year 2026 changes for each form below, including every new node, and tax year 2026 is supported only in v2.0.0. Here is what changes form by form, with the new nodes called out.
Forms 1099-NEC and 1099-MISC
Both forms get the same two updates.
- Threshold: The reporting threshold goes from $600 to $2,000 for payments made in 2026. Backup withholding aligns with the new $2,000 figure. The IRS indexes the threshold for inflation starting in 2027.
- New fields: Four nodes are added to
NECFormDataandMISCFormDatafor tax year 2026 returns:CashTips,TTOC1,TTOC2andOvertimeComp. - TTOC values:
TTOC1andTTOC2accept IRS-defined occupation codes. Valid values are in the Treasury Tipped Occupation Codes dictionary.
On the paper forms, the IRS places these in Boxes 1b to 1d on 1099-NEC and Boxes 13a, 13b and 14 on 1099-MISC.
The $2,000 threshold covers most 1099-MISC payments, such as rents, prizes and awards, and other income. Some boxes keep their own thresholds. Royalties, for example, still report at $10.
Form 1099-K
Form 1099-K gets the tips fields but not the overtime field.
- New fields:
CashTips,TTOC1andTTOC2are added toKFormDatafor tax year 2026 returns. - TTOC values: The same Treasury Tipped Occupation Codes dictionary applies.
Form 1099-DA
Brokers report digital asset transactions on Form 1099-DA. Gross proceeds reporting began with 2025 sales. For sales effected on or after January 1, 2026, the rules add basis reporting.
- Gross proceeds: Brokers report gross proceeds from digital asset transactions.
- Basis, covered securities: Basis reporting is required.
- Basis, noncovered securities: Basis reporting is voluntary.
Form 1099-S
Form 1099-S now covers digital assets used in the sale or exchange of real estate. TaxBandits updated the PDF template to the IRS tax year 2026 specification, including field mappings, layout, alignment, formatting and validation logic.
- Box 2a: Total gross proceeds, calculated from Boxes 2b and 2c.
- Box 2b: Cash gross proceeds, captured separately.
- Box 2c: Gross proceeds received in digital assets.
- Boxes 8a to 8d: The Digital Token Identifier Foundation (DTIF) code, digital asset name, number of units, and the date received or to be received.
New nodes: CashProceeds, DigiAssetProceeds, DigiAssetCode, DigiAssetNm, NumOfUnits and DateAcquired.
Form 1099-R
Form 1099-R gets the most visible layout change of the year.
- Box 7a: Distribution codes (the old Box 7). Code Y is added to the list. The IRS created it for qualified charitable distributions, and using it is optional for tax year 2026.
- Box 7b: The IRA/SEP/SIMPLE checkbox.
- Box 7c: New box for Trump account reporting.
- Box 7d: New box for earnings on excess contributions.
- Boxes 8a and 8b: The old Box 8 and the percentage box, renumbered.
New nodes: IsTrumpAccount and ExcessContrib.
Form 1099-G
Form 1099-G adds a new Box 10 for family leave benefits paid by state paid family and medical leave programs.
New node: FamilyLeaveBenefits.
Related forms: W-2 and W-2G
These are not 1099s, but they change for the same reasons and often share a payroll or filing workflow.
Form W-2
- Social Security wage base: The maximum for Box 3 is $184,500.
- Social Security tax withheld: The maximum for Box 4 is $11,439, which is 6.2% of the wage base.
- Box 14: Split into Box 14a (Other) and Box 14b (Treasury Tipped Occupation Code(s)).
- Box 12: New codes TA, TP and TT, supported in the
CompCd1,CompCd2,CompCd3andCompCd4nodes. - New nodes:
TTOC1andTTOC2.
Form W-2G
- Threshold: The minimum reporting and backup withholding threshold rises to $2,000 for 2026, with annual inflation adjustments after that.
Tax year 2026 changes at a glance
| Form | What changes | New nodes or codes |
|---|---|---|
| 1099-NEC | $2,000 threshold, backup withholding aligned, tips and overtime fields | CashTips, TTOC1, TTOC2, OvertimeComp |
| 1099-MISC | $2,000 threshold, backup withholding aligned, tips and overtime fields | CashTips, TTOC1, TTOC2, OvertimeComp |
| 1099-K | Tips fields | CashTips, TTOC1, TTOC2 |
| 1099-DA | Gross proceeds, plus basis for covered securities | None listed |
| 1099-S | Boxes 2a to 2c for total, cash and digital asset proceeds, plus Boxes 8a to 8d | CashProceeds, DigiAssetProceeds, DigiAssetCode, DigiAssetNm, NumOfUnits, DateAcquired |
| 1099-R | Boxes 7 and 8 renumbered, Boxes 7c and 7d added, code Y added | IsTrumpAccount, ExcessContrib |
| 1099-G | New Box 10 for family leave benefits | FamilyLeaveBenefits |
| W-2 | Wage base $184,500, Box 14 split, Box 12 codes added | TTOC1, TTOC2, codes TA, TP, TT |
| W-2G | $2,000 threshold | None |
Which 1099 forms have no changes for 2026?
Ten forms carry no content changes for tax year 2026, so their fields and boxes stay as they were.
| Form | What it reports |
|---|---|
| 1099-A | Acquisition or abandonment of secured property |
| 1099-B | Proceeds from broker and barter exchange transactions |
| 1099-C | Cancellation of debt |
| 1099-DIV | Dividends and distributions |
| 1099-INT | Interest income |
| 1099-LTC | Long-term care and accelerated death benefits |
| 1099-OID | Original issue discount |
| 1099-PATR | Taxable distributions from cooperatives |
| 1099-Q | Payments from qualified education programs |
| 1099-SA | Distributions from HSAs, Archer MSAs and Medicare Advantage MSAs |
No form changes does not mean no IRIS impact. These forms follow the same e-filing rules as every other 1099, so they also go through IRIS once FIRE retires.
When does FIRE retire, and how does the move to IRIS work?
The IRS retires the Filing Information Returns Electronically (FIRE) system in November. From January 1, 2027, the Information Returns Intake System (IRIS) is the only system for e-filing information returns, and that covers current-year returns, prior-year returns and corrections. Tax year 2026 is the first tax year filed only through IRIS.
Key dates
| When | What applies |
|---|---|
| Tax year 2025 returns, filed in 2026 | FIRE and IRIS both accept filings |
| From July 21, 2026 | The IRS no longer accepts new applications for FIRE transmitter control codes (TCCs). Existing applicants can update their applications through December 2026. |
| End of December 2026 | FIRE retires |
| January 1, 2027 onward | IRIS is the only e-file system, including for prior-year returns and corrections |
The move from FIRE to IRIS does not change what you report or when. Reporting requirements and due dates for Forms 1099 stay the same.
How IRIS works for filers
IRIS offers two ways to file. The IRIS Taxpayer Portal is a web-based option, and the application-to-application (A2A) interface sends returns system-to-system for software and platforms that file in volume.
A few details matter for anyone building against it:
- Separate TCC: A FIRE TCC does not carry over. Filers need a TCC issued through the IRIS application, and processing can take up to 45 days.
- A2A access: A2A filers also need an API Client ID.
- Schemas by tax year: The IRS publishes IRIS schemas and business rules for each tax year. A prior-year return uses the schema and rules from its own tax year, and tax years are never mixed in one transmission.
- Test environment: The IRIS Assurance Testing System (ATS) is open year round for test transmissions.
- Stricter validation: Filers may see more rejections at first because of IRIS validation rules, so checking data before transmission pays off.
💡 Good to know: After FIRE retires, a correction to an older return, including a tax year 2025 return, also has to go through IRIS.
How does TaxBandits handle the FIRE to IRIS transition?
If you file through the TaxBandits API, the IRIS side is largely taken care of. API v2.0.0 routes every filing through IRIS by default, so there is no filing path to choose and no IRS transmission logic for you to maintain.
What TaxBandits handles for you
- No filing type to pick. Previously, an integration could choose between FIRE and IRIS. Now that selection is gone, and every filing goes to IRIS automatically.
- IRS requirements built in. The new data points required for IRIS and OBBBA are part of v2.0.0, so the tax year 2026 fields in this post arrive with the version.
- Validation before you file. The API checks field-level specifications against IRS business rules when a form is created. That helps with the tighter IRIS validation described above.
- Better status visibility. v2.0.0 returns more granular status information and detailed logs for transmitted returns, so you can see where a return stands.
- Corrections stay in the API. Corrections are filed through the API as well, which matters once all corrections must go through IRIS.
- Fewer calls at scale. You can create and update up to 250 returns in a single payload, and transmit, check status, and list filings in bulk.
The one piece of work that remains
Your integration still has to move to v2.0.0 for tax year 2026, because that tax year is not supported in v1.7.3. Tax years 2025 and 2024 work in both versions.
The migration guide covers the full list of changes. These are the ones most likely to need code:
- FIRE-specific logic: Remove it. The guide says any such logic in your integration must go.
- Node names: Field names are standardized across forms, and some are renamed or reorganized. TaxBandits provides a node-mapping document for each endpoint that shows how v1.7.3 fields map to v2.0.0.
- Status handling: If your integration relies on status polling, review the expanded status response.
How to get ready for tax year 2026 filing
Start with the migration guide and a sandbox test, since most of the work sits in your integration rather than in the tax rules. Here is a short checklist:
- Read the v1.7.3 to v2.0 migration guide and the node-mapping document for each form you file.
- Create a free sandbox account and test your requests with the new tax year 2026 fields.
- Remove any FIRE-specific logic from your integration.
- Update your threshold logic for 1099-NEC, 1099-MISC and W-2G to $2,000, including backup withholding.
- Add the new nodes for the forms you file, such as
CashTips,TTOC1,TTOC2andOvertimeComp. - Review how your code reads the expanded status response.
Dates help with planning too. Form 1099-NEC is due January 31, and for tax year 2026 that date falls on a Sunday, so the due date is Monday, February 1, 2027.