2026 1099-NEC Changes
Box 1a: Nonemployee compensation
Replaces the old standalone Box 1. Reports total gross nonemployee compensation meeting or exceeding the new $2,000 threshold. Amounts reported in 1b and 1d are subcomponents already included in this total.
Box 1b: Cash Tips
Enter the total amount designated as cash tips included in box 1a. Cash tips include tips paid in cash or charged by customers.
Box 1c: Treasury Tipped Occupation Codes (TTOC)
Accepts up to two 3-digit Treasury codes identifying the recipient's eligible tipped occupation. See the
Treasury Tipped Occupation Code list. Source:
IRS.gov.
Box 1d: Qualified Overtime Compensation:
Enter the total amount of qualified overtime compensation included in box 1a. Qualified overtime compensation is compensation that is paid to an individual required under section 7 of the Fair Labor Standards Act (FLSA) of 1938 that is more than the regular rate at which the individual is paid. For example, only the “half” portion of “time-and-ahalf” compensation would be reported in box 1d. For more information about overtime compensation, go to
Overtime Pay
