The IRS has released draft December 2026 versions of Forms 1099-NEC and 1099-MISC, and the changes are more than cosmetic. Both drafts introduce new fields for cash tips, Treasury Tipped Occupation Codes, and overtime compensation, reflecting reporting changes tied to deductions created under recent federal legislation. The drafts also rework how payer address information is displayed, splitting what was previously a single payer name-and-address block into multiple separate fields. Because these are draft forms, they are not yet final, but they give payroll, tax, and information-reporting teams an early look at where compliance is heading.
On the draft 2026 Form 1099-NEC, the familiar Box 1 for nonemployee compensation becomes Box 1a. New Box 1b is used for cash tips, Box 1c for Treasury Tipped Occupation Code(s), and Box 1d for overtime compensation. The recipient instructions in the draft make clear that the amounts shown in Boxes 1b and 1d are already included in Box 1a.
The draft 2026 Form 1099-MISC follows the same policy direction, but with a different box layout. It adds Box 13a for cash tips, Box 13b for Treasury Tipped Occupation Codes, and Box 14 for overtime compensation. The form also removes the prior numbering for the FATCA filing requirement checkbox; on the 2025 version, that item appeared as Box 13, but in the 2026 draft it is no longer numbered.
What changed from the 2025 versions?
In 2025, Form 1099-NEC had a much simpler structure: Box 1 was Nonemployee compensation, followed by the direct-sales checkbox in Box 2, excess golden parachute payments in Box 3, and federal and state tax boxes after that. There were no separate fields for cash tips, Treasury Tipped Occupation Codes, or overtime compensation. The payer information area also appeared as one combined name/address block rather than multiple separated fields.
Likewise, in 2025, Form 1099-MISC did not have dedicated boxes for tips or overtime. Instead, the form showed Box 13 as FATCA filing requirement, Box 14 as reserved for future use, and Box 15 as Nonqualified deferred compensation. In the 2026 draft, those positions shift materially: the FATCA checkbox loses its box number, the formerly blank Box 14 becomes overtime compensation, and the new tip-related items appear as Boxes 13a and 13b. That is a meaningful redesign, not a minor edit.
Why this matters
These drafts suggest the IRS is preparing to make Forms 1099-NEC and 1099-MISC part of the operational framework for new federal deductions tied to tipped income and overtime compensation. That creates downstream implications for payer systems, year-end reporting logic, tax engine mapping, and recipient communications. Any organization that issues 1099s for nonemployee compensation or miscellaneous income should expect form logic, data capture, and possibly onboarding workflows to change before the 2026 filing cycle is finalized.
Bottom line
The 2026 draft Forms 1099-NEC and 1099-MISC move beyond traditional income reporting by carving out specific reporting lines for cash tips, Treasury Tipped Occupation Codes, and overtime compensation. Compared with the 2025 forms, the 2026 drafts introduce a more granular reporting structure and alter box numbering in ways that will matter for tax products, payroll systems, and compliance teams. These forms are still drafts, so teams should treat them as directional rather than final, but the reporting intent is already clear.
Comparison Guide
| Form | 2025 version | 2026 version |
| 1099-NEC | Box 1 = Nonemployee compensation | Box 1 becomes 1a; adds 1b Cash tips, 1c Tipped Occupation Codes, 1d Overtime compensation |
| 1099-NEC | No separate tip or overtime reporting | Tip and overtime amounts are called out separately but included in Box 1a |
| 1099-NEC | Single combined payer name/address area | Payer name and address split into separate fields |
| 1099-MISC | Box 13 = FATCA filing requirement; Box 14 reserved for future use | 13a Cash tips, 13b Tipped Occupation Codes, 14 Overtime compensation; FATCA checkbox no longer numbered |
| 1099-MISC | No dedicated tip or overtime boxes | New dedicated fields support deduction-related reporting changes |