W-2 and 1099 deadline is February 1, 2027: what changed
Employers must give out and file 2026 W-2 and contractor 1099 forms by February 1, 2027, with a new $2,000 threshold and new W-2 boxes for overtime and tips.
Forms W-2 and the Form 1099 for nonemployee compensation (NEC) for 2026 are due February 1, 2027, because January 31 falls on a Sunday. That date covers both the copies you give workers and the copies you file. For payments made in 2026, Form 1099-NEC starts at $2,000 paid to one contractor, up from $600. The 2026 Form W-2 also adds box 12 codes for overtime, tips and Trump accounts, and a box 14b.
- Give workers their 2026 Forms W-2 and 1099-NEC, and file them, by February 1, 2027.
- For payments in 2026, Form 1099-NEC starts at $2,000 paid to one contractor.
- Report qualified overtime and cash tips in box 12 of the 2026 Form W-2; the penalty relief for 2025 does not carry over.
Due dates for 2026 Forms W-2 and 1099
Under Internal Revenue Service (IRS) rules, a due date that falls on a weekend or legal holiday moves to the next business day. In 2027, January 31 and February 28 are Sundays, and February 15 is Washington's Birthday, a legal holiday.[2][4]
| Form | Give the worker their copy by | File by |
|---|---|---|
| Form W-2 (with Form W-3) | February 1, 2027 | February 1, 2027, with the Social Security Administration (SSA), on paper or electronically |
| Form 1099-NEC | February 1, 2027 | February 1, 2027, with the IRS, on paper or electronically |
| Form 1099-MISC (rents, prizes and other payments) | February 1, 2027; February 16, 2027 if you report amounts in box 8 or 10 | March 1, 2027 on paper, or March 31, 2027 electronically, with the IRS |
You must file Forms W-2 electronically if you file at least 10 information returns in total. The count adds your Forms W-2 to your 1099 forms and other information returns.[1][2]
An extension to file Forms W-2 is not automatic. You may ask for one 30-day extension on Form 8809, granted only in extraordinary circumstances or catastrophe. More time to give employees their copies is a separate request on Form 15397, generally for no more than 15 days.[1]
The $2,000 threshold for contractor payments on Form 1099
For payments made in 2026, file Form 1099-NEC for each person you paid at least $2,000 in nonemployee compensation. Nonemployee compensation means fees, commissions and other pay for services to someone who is not your employee, such as an independent contractor. The threshold was $600 for 2025. It may be adjusted for inflation beginning in calendar year 2027.[2][3]
Most payments on Form 1099-MISC, which reports miscellaneous information (MISC) such as rents and prizes, also start at $2,000. That includes rents, prizes and awards, and medical and health care payments. Some keep lower levels: gross proceeds paid to an attorney still start at $600, and royalties and broker payments in lieu of dividends at $10. If you withheld federal income tax under the backup withholding rules, file the form whatever the amount.[2]
Payments to corporations are generally not reportable. Exceptions include medical and health care payments and payments for legal services: report those even when the payee is a corporation.[4][2]
Payments by credit card, payment card or a payment app are not reported on Form 1099-NEC or 1099-MISC. The card company or app reports them on Form 1099-K instead. An app sends that form when payments for goods or services total over $20,000 in more than 200 transactions.[2][5]
The Form W-2 threshold rose too. For wages paid after 2025, file a Form W-2 for wages of $2,000 or more when you withheld no tax, up from $600. Which form a worker gets depends on whether they are your employee: see how to tell an independent contractor from an employee.[1]
New on the 2026 Form W-2: box 12 codes for overtime, tips and Trump accounts, and box 14b
The One Big Beautiful Bill Act (Public Law 119-21) created deductions for qualified tips and overtime. Employers must now report both on Form W-2. The 2026 form also splits box 14 into box 14a, for what box 14 used to carry, and box 14b.[1]
- Total qualified overtime compensation (TT), in box 12: only the premium the Fair Labor Standards Act (FLSA) requires above the regular rate. An example is the "half" of time-and-a-half.
- Total cash tips the employee reported to you (TP), in box 12.
- Treasury Tipped Occupation Codes, in box 14b: up to 2 codes for the jobs in which tips were earned. Enter "000" as one of them if any tips came from a nonqualifying occupation.
- Employer contributions to Trump accounts (TA), in box 12: what you paid into an employee's or their dependent's account. Contributions go through a section 128 Trump account contribution program. From July 4, 2026, you may contribute up to $2,500 a year, which counts toward the account's $5,000 yearly limit.
Report all the qualified overtime you paid in code TT. That holds even when it is more than the $12,500 ($25,000 on a joint return) the employee can deduct. Overtime, and tips of $20 or more a month, are still generally subject to income tax withholding and to Social Security and Medicare tax.[6][1]
Forms 1099-NEC and 1099-MISC (December 2026 revision) gain matching boxes for tips, occupation codes and overtime. Overtime belongs on a Form 1099 only in a rare case. That is a worker who is your employee under the FLSA but treated as an independent contractor for tax.[2][6]
The 2025 forms had no boxes for tips or overtime. Notice 2025-62 waived the penalties for leaving those amounts off, and that relief applies only to tax year 2025. If you find an error in code TT on a 2026 form, file Form W-2c with the SSA. Give the employee a copy as soon as possible.[7][6]
Penalties for late or incorrect Forms W-2 filed in 2027
These penalties apply to returns required to be filed after December 31, 2026. The same amounts apply, as a separate penalty, when you fail to give employees a correct Form W-2 by February 1, 2027.[1]
| When you file the correct form | Penalty per form | Yearly maximum | Yearly maximum for a small business |
|---|---|---|---|
| Within 30 days after the due date | $60 | $698,500 | $244,500 |
| More than 30 days late, by August 1 | $130 | $2,095,500 | $698,500 |
| After August 1, or never | $340 | $4,191,500 | $1,397,000 |
For the tax return itself, see how the overtime deduction works and how bonuses are taxed.
A small business, for these maximums, had average annual gross receipts of $5 million or less over its 3 most recent tax years. Intentional disregard of the rules costs at least $690 per Form W-2, with no maximum.[1]
Sources
Scope: Covers federal Forms W-2, 1099-NEC and 1099-MISC for payments made in 2026 and filed in 2027, as of October 23, 2026. Does not cover state filings, household employers, US territory forms or Form 1099-K duties. For your situation, contact the IRS information reporting customer service line or a tax professional.
- General Instructions for Forms W-2 and W-3 (2026)Internal Revenue Service · Accessed October 23, 2026
- Instructions for Forms 1099-MISC and 1099-NEC (12/2026)Internal Revenue Service · Accessed October 23, 2026
- Instructions for Forms 1099-MISC and 1099-NEC (Rev. April 2025)Internal Revenue Service · Accessed October 23, 2026
- Publication 1099 (2026), General Instructions for Certain Information ReturnsInternal Revenue Service · Accessed October 23, 2026
- Understanding your Form 1099-KInternal Revenue Service · Accessed October 23, 2026
- Updates to questions and answers about the new deduction for qualified overtime compensation (FS-2026-13)Internal Revenue Service · Accessed October 23, 2026
- Notice 2025-62: Relief from certain penalties related to information reporting required in connection with no tax on tips and overtimeInternal Revenue Service · Accessed October 23, 2026
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