Episode 11: Crossing the $600/$2,000 Threshold -- How Do You Know?

In this episode of Information Return Intelligence, Jason Dinesen goes back to one of the most fundamental—and most commonly misunderstood—questions in information reporting: how do you know when you’ve crossed the 1099 reporting threshold?With the familiar $600 threshold increasing to $2,000 for many payments starting in 2026, understanding how amounts are counted is more important than ever.Key topics covered:What “Crossing the Threshold” Really MeansReporting is based on the cash method and the calendar year.The trigger is what you actually paid, not what was invoiced.Cash Method Explained (In Plain English)Checks written during the year count—even if the recipient cashes them later.Payments are counted in the year the money leaves your hands.Calendar Year vs. Your Tax Return1099 reporting always follows January 1–December 31.Your organization’s fiscal year or accounting method does not control 1099 reporting.As a result, the amount reported on a 1099 may differ from the deduction shown on your tax return—especially for accrual-method taxpayers.Practical Example WalkthroughAn invoice received in December but paid in January belongs on the following year’s 1099.The same logic applies to year-end invoices paid after December 31.This timing difference affects both:Whether the reporting threshold is met, andWhat dollar amount ultimately appears on the 1099.Bottom line:When determining whether you’ve crossed the $600 threshold (or $2,000 in 2026), and what amount to report:Think cash, not invoices.Think calendar year, not fiscal year.Don’t assume your tax return and your 1099 totals will match—because they often won’t.🎧 Join us again next week for another episode of Information Return Intelligence.