The recent passage of the One Big Beautiful Bill (OBBB) marks a pivotal shift in federal tax policy, particularly affecting the 2026 tax year. According to the results published in the material, with significant changes to tax reporting and marginal tax rates, the legislation aims to alleviate the financial strain on small businesses and independent contractors.
Increase in Form 1099 Threshold
One of the most notable changes is the increase in the threshold for issuing Form 1099, which has risen from $600 to $2,000. This adjustment is designed to reduce the administrative burden on small businesses and independent contractors, allowing them to focus more on their operations rather than paperwork.
Revised Marginal Tax Rates
In addition to the Form 1099 threshold change, the OBBB has also revised marginal tax rates to better reflect inflation. This adjustment is crucial as it prevents wage increases from unintentionally pushing taxpayers into higher tax brackets, thereby maintaining their purchasing power. These reforms are expected to have a positive impact on the financial landscape for many Americans.
The recent changes in federal tax policy under the One Big Beautiful Bill (OBBB) contrast with the newly launched Repayment Assistance Program (RAP) aimed at student loans. For more details, see more.
