Information Return Intelligence
Your weekly briefing on 1099s, 1042-S, and everything related to information forms.
Information Return Intelligence
Episode 13: A Look at the Drafts of 1099-NEC and 1099-MISC
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In this episode of Information Return Intelligence, I break down the draft 2026 versions of Forms 1099-NEC and 1099-MISC and explain what’s really going on with the new boxes for tips and overtime.
These changes are tied to the Big Beautiful Bill and the new above-the-line deduction for qualifying tips and qualifying overtime on individual tax returns. While this feels like a payroll issue (and most of the time, it is), there are some important 1099 implications that AP and tax teams can’t ignore.
We cover:
- What’s changing on the draft 2026 1099-NEC and 1099-MISC
- Why 2025 reporting is optional, but 2026 will be mandatory
- When overtime could ever show up on a 1099 (rare, but possible)
- How tips paid to contractors create new reporting responsibilities
- The importance of the Treasury’s list of tipped occupations
- Why AP and payroll need to be talking to each other now
If your organization issues 1099s—or if you’re the person everyone turns to when reporting rules change—this is one of those episodes you’ll want on your radar early.
📌 Important note: These forms are still in draft status as of February 3, 2026.
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