1099s for 2026

1099 Reporting Just Changed for 2026

The IRS Raised the Threshold to $2,000. Here’s What Business Owners Need to Know.

For years, business owners have been trained like Pavlov’s accountant:

“Pay someone over $600? Issue a 1099.”

That rule became so embedded into bookkeeping and tax workflows that many businesses treated it like gravity. Not necessarily because they understood it, but because fighting gravity usually ends badly.

Now, beginning with payments made in 2026, the federal reporting threshold for many Forms 1099 increases from $600 to $2,000.

At first glance, this sounds like welcome relief:

• Fewer forms
• Less administrative work
• Lower compliance burden
• Fewer January panic attacks involving missing W-9s

But as with most tax changes, the surface simplicity hides several traps underneath.

Let’s break down what changed, what did not change, and why businesses should still proceed carefully.

Paying Family Without Payroll Taxes: A SharpCFO-Level Strategy Most Advisors Miss

Precision at speed. This is one of those plays that works beautifully… right up until it doesn’t.

The Idea Everyone Knows… and the Part They Miss

Most advisors stop at the obvious:

“Put your kid on payroll.”

Fine. Basic. Safe. Boring.

That works great if:

• You’re a Schedule C
• Your child is under 18
• You’re okay running full payroll

But here’s the part almost nobody leans into:

You can often pay family members — including older children — without payroll taxes at all… if structured correctly.

And that’s where things go from “tax tip” to strategic tax engineering.

Can You Deduct a Motorhome as a Business Expense or Second Home?
The tax rules, the traps, and the records you better keep

Motorhomes are expensive. So naturally, many taxpayers eventually ask the sacred tax-season question:

“Can I write this thing off?”

The answer is: maybe.
Here is a reasonably detail 4,000+ word article to help you undetand the nuances of this question...

A motorhome can potentially qualify as a second home for mortgage interest purposes. It can also potentially be used as a business asset. But those are two very different tax positions, with very different rules. The IRS does not care that the RV has a desk, a logo decal, and a Wi-Fi hotspot powerful enough to make it feel like a regional office. The IRS cares about use, allocation, substantiation, and whether the tax law actually allows the deduction.

This is where many taxpayers drift from tax planning into tax cosplay.

Let’s break down the two common approaches.

For taxpayers who carefully manage their income to qualify for premium subsidies, this change matters more than most people realize.

And unfortunately, we see the consequences every year in tax season.

Clients often receive advance premium credits based on income estimates provided during enrollment. If those estimates turn out to be wrong, the IRS reconciliation process can produce an unexpected tax bill.

Starting in 2026, the risk becomes significantly larger.

529 Plans: The Education Savings Tool Everyone Talks About… But Few Fully Understand

Let’s be honest. Saving for education has turned into its own little maze. Tax rules here, contribution limits there, and somewhere in the middle is a well-meaning parent just trying not to get steamrolled by tuition.

Enter the 529 plan. The fan favorite. The one everyone’s heard of… and half understand.

Let’s fix that. Here is a SIMPLIFIED, easy to understand overview of all you need to know...

IRS Fresh Start: The Reality Check

Don't let tax debt keep you in the dark. The IRS Fresh Start initiative offers genuine avenues for relief, but it’s not a magic trick. It requires careful navigation and compliance. Think of it as a well-lit path toward financial stability—if you have the right map.

While marketing emails might make it sound like an automatic "get out of debt free" card, the reality is that the program streamlines existing IRS tools, such as Offers in Compromise, Installment Agreements, and tax lien relief. To find your way through, you must meet specific criteria, provide detailed financial information, and stay current on future filings.

Success isn't about wishing your debt away; it’s about strategic action and professional guidance. Taking a reality check on your situation is the first step toward a clearer, secure financial horizon. Let WeDoBooks.com help you find the way.

Net Unrealized Appreciation (NUA): A Tax Opportunity Hidden Inside Some Retirement Plans

Many employees accumulate company stock inside their retirement plans over the course of their careers. When retirement approaches, that stock may qualify for a little-known tax treatment called Net Unrealized Appreciation (NUA).

When handled correctly, NUA can significantly reduce the tax burden associated with distributing company stock from a retirement plan. When handled incorrectly, the opportunity disappears and the entire distribution may become taxable as ordinary income.

Understanding the mechanics of NUA is therefore important before taking any action with employer stock held inside a retirement account.