2026 Form 1099 Updates: Reporting Overtime and Tips for Contractors

The 2026 versions of Form 1099-NEC and 1099-MISC include a new box for overtime pay. This would be for reporting overtime which qualifies for the recipient to take a tax deduction on their personal tax return for that overtime. As discussed in previous articles, it is unlikely that you would ever pay overtime to a contractor that would need to be reported on a 1099. The only overtime which qualifies for this new deduction is overtime paid under the Fair Labor Standards Act, which applies to…