What is the 1099 threshold for 2026?

$2,000 for Form 1099-NEC and most 1099-MISC boxes. Gross proceeds paid to attorneys in box 10 are still reported at $600.

Do attorneys get a 1099 if they are a corporation?

Yes. The usual corporate exemption doesn't apply to payments to attorneys and law firms.

Should referral fees go on a 1099-NEC or 1099-MISC?

Referral fees and co-counsel fees are payments for legal services, so they generally go on a 1099-NEC.

Does a law firm issue a 1099 to its client after a settlement?

Usually not. The defendant or insurer is generally the payer, and the firm is only passing the client's share along from trust. Check with your CPA on unusual settlements.

Do you need a 1099 for payments made by credit card?

No. Card and payment app payments are reported by the processor on a 1099-K.

When are 1099-NEC forms due for 2026?

February 1, 2027, both to recipients and to the IRS.

What if a vendor won't provide a W-9?

You'll have to withhold 24% of each payment as backup withholding and report it on a 1099.

1099 Reporting for Law Firms: What to File and When

A plain guide to 1099 reporting for law firms in 2026: the new $2,000 threshold, 1099-NEC vs 1099-MISC box 10, settlement payments, W-9s, and filing deadlines.