Heads-up: Big changes ahead for 1099 reporting (2025 / 2026)
- Alexsandra Litmanovich
- Oct 5, 2025
- 1 min read
What’s new with Form 1099-DA (Digital Assets)
The IRS is rolling out Form 1099-DA (“Digital Asset Proceeds from Broker Transactions”) starting tax year 2025 to standardize reporting of crypto/digital-asset trades.
Brokers (exchanges, custodial wallet providers, payment processors) will be required to issue to both the taxpayer and the IRS.
The form will include gross proceeds, cost basis (when known), acquisition & disposition dates, fair market values, and more.
First 1099-DAs will be furnished in early 2026 for 2025 activity.
Filing deadlines: furnish to recipients by February 17, 2026, file with IRS (paper) by Feb 28, (electronic) by March 31, 2026.
1099-NEC / 1099-MISC: reporting thresholds are rising
Under current rules, payors must issue 1099-NEC or 1099-MISC when payments total $600 or more in a calendar year.
The One Big Beautiful Bill Act (signed July 4, 2025) increases the threshold to $2,000, effective for tax year 2026 (i.e. the forms you’d issue in 2027).
Starting 2027, the $2,000 threshold will be indexed for inflation.
Backup withholding obligations (for missing or incorrect TINs) will align with that $2,000 threshold.
1099-K (payment card / third-party network transactions)
Previously, the threshold was $600 (no transaction minimum) under the American Rescue Plan changes.
The One Big Beautiful Bill reverts the 1099-K threshold back to $20,000 AND 200 transactions (i.e. both criteria must be met).
This reversion is effective “as if” included in the original law changes (i.e. retroactive application).
✅ Takeaway: Even if you don’t receive a 1099 form for a given type of transaction, you’re still responsible for reporting all taxable income.
