The $2,000 1099 threshold: what to check in SAP Business One® before you run your 2026 1099s

For payments made in 2026, the IRS reporting threshold for Form 1099-NEC and most Form 1099-MISC boxes rose from $600 to $2,000. SAP Business One keeps one Minimum 1099 Amount per 1099 box, and the 1099/1096 report uses it to decide which vendors to list. If your boxes still have the old minimum, your 2026 report can list vendors who are below the new $2,000 threshold.

This guide covers the SAP Business One setup only. It is not tax advice: your tax adviser decides which payments you report.

What changed, and what didn’t

Backup withholding follows the same $2,000 threshold. From 2027 payments onward, the amount can change with inflation, so check the IRS page each year.

Sources: the IRS page Am I required to file a Form 1099? and the Instructions for Forms 1099-MISC and 1099-NEC.

Before you change anything

• Run and save your 2025 1099 reports first. In SAP’s documentation the Minimum 1099 Amount has no year: one amount per box. So, as far as the documentation shows, a 2025 report you run again after the change would use $2,000 too.
• Make a list of the boxes you actually use. Box codes and descriptions in your company may differ from the IRS form numbers, so match them by description.

1. Find the minimum per box

1. Go to Administration > Setup > Financials > 1099 Table.
2. Select the form (for example 1099 NEC or 1099 MISC) and choose 1099 Boxes, or double-click the form’s row.
3. The 1099 Boxes – Setup window shows each box with its Box Description and Minimum 1099 Amount.

2. Set the 2026 amounts

• Set the Minimum 1099 Amount to 2,000 on the 1099-NEC nonemployee compensation box and on the 1099-MISC boxes for rents, other income, medical and health care payments and crop insurance.
• Check that royalties and substitute payments show 10, and gross proceeds paid to an attorney 600; don’t change them to 2,000.
• Save your changes, then open the window again and read the amounts back.

SAP’s help doesn’t say whether a vendor at exactly $2,000.00 is included. The IRS instructions say “$2,000 or more”, so check any vendor close to that line yourself (step 4).

3. Check your 1099 vendors

On each 1099 vendor’s master record, Accounting tab, General subtab:

• 1099 Form and 1099 Box are filled in. They become the default on that vendor’s A/P invoices.
• Federal Tax ID is filled in. If it’s empty, SAP Business One shows message 10000160 when you save, and the Tax ID on that vendor’s 1099 and 1096 forms prints blank.

To correct the 1099 form, box or amount on documents you have already posted, use Financials > 1099 Editing. It covers A/P invoices and A/P credit memos not based on an invoice. SAP’s help lists no minimum-amount filter for it, so expect it to show documents below 2,000 as well.

4. Run the 1099/1096 report for 2026

1. Go to Financials > Financial Reports > Accounting > 1099/1096 Report.
2. Set Posting Date From 01/01/2026 To 12/31/2026.
3. Leave Include Vendors with 1099 Amount Lower than Required cleared. The report then leaves out vendors below their box’s minimum.
4. Run it once more with that checkbox selected, and compare. The difference is your list of vendors below the line. Check two kinds of vendor on it with your adviser: anyone you withheld tax from (they need a 1099 whatever the amount), and anyone just under $2,000.

The report works on payments made in the calendar year: a partly paid invoice counts with the amount paid.

Filing: two things SAP Business One doesn’t settle for you

• The 2026 forms changed. The IRS added new boxes to the 2026 Form 1099-NEC (1b to 1d), and nonemployee compensation is now box 1a. SAP’s help doesn’t say whether the NEC print layouts in your version match the 2026 form. Print a test page on plain paper and hold it against the form before you print the real ones.
• Electronic filing moved to IRIS. The IRS’s old FIRE system takes its last returns on 19 November 2026; returns for tax year 2026 go through IRIS. The free IRIS portal takes typed entries or a CSV upload, up to 100 returns at a time. We found no SAP page that describes an IRIS or FIRE file from SAP Business One, so plan how you get the report data into IRIS, or ask whoever files for you. If you file 10 or more information returns in total, you must file electronically. Source: IRS, IR-2026-99.

Dates for your 2026 1099s

• 1 February 2027: 1099-NEC to the IRS and to recipients, and 1099-MISC to recipients (31 January 2027 is a Sunday).
• 1 March 2027: 1099-MISC to the IRS on paper. 31 March 2027: 1099-MISC filed electronically.

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