The IRS published a draft Form 1099-MISC (Rev. December 2026) on April 9, 2026, introducing the most significant changes to this form in years. Three entirely new boxes have been added, one long-standing box has been relocated to a different form, and multiple existing boxes have been renumbered.
If you file 1099-MISC forms for rent payments, royalties, medical payments, legal proceeds, or other miscellaneous income, here is exactly what is changing and what you need to do about it.
Summary of All Changes
The 2026 draft 1099-MISC has three categories of changes:
- 3 new boxes for cash tips, Treasury Tipped Occupation Codes (TTOC), and overtime compensation
- 1 removed box — excess golden parachute payments, which moves to Form 1099-NEC Box 3
- 4 renumbered boxes — nonqualified deferred compensation and all three state reporting fields shift by one
Why Is the IRS Changing the 1099-MISC?
The No Tax on Tips and No Tax on Overtime provisions in the One Big Beautiful Bill Act created two new above-the-line deductions for workers. To claim these deductions on the new Schedule 1-A (Form 1040), recipients need the tip and overtime amounts separately broken out on their information returns.
The 1099-MISC needed new boxes so that recipients who receive miscellaneous income (reported in Box 3) can identify the tip and overtime portions. Without separate reporting, there would be no way for the IRS to match deduction claims against what payers actually reported.
New Boxes Added to the 1099-MISC
New Box 13a: Cash Tips
Box 13a reports the total amount of cash tips paid. “Cash tips” includes tips received in cash and tips charged to credit or debit cards. This amount is already included in the Box 3 (Other income) total — it is not an additional amount on top of Box 3.
Recipients use the Box 13a amount on Part II of the new Schedule 1-A (Form 1040) to calculate the qualified tip deduction.
New Box 13b: TTOC (Treasury Tipped Occupation Code)
Box 13b holds up to two Treasury Tipped Occupation Codes identifying the recipient’s tipped occupation(s). These codes determine whether the recipient’s tips qualify for the deduction on Schedule 1-A.
Important: If occupation code 000 appears in Box 13b with no other code, the recipient’s cash tips are not qualified tips. The recipient should not use the Box 13a amount to calculate the qualified tip deduction.
New Box 14: Overtime Compensation
Box 14 reports the total overtime compensation amount. Like cash tips, this amount is already included in Box 3 (Other income). Recipients use Box 14 on Part III of Schedule 1-A (Form 1040) to calculate the qualified overtime compensation deduction.
Golden Parachute Payments Move to 1099-NEC
On the current form (Rev. January 2024), Box 13 reports excess golden parachute payments. This field has been removed from the 1099-MISC entirely.
Starting with tax year 2026, excess golden parachute payments are reported on Form 1099-NEC, Box 3 instead. The IRS made this move because golden parachute payments are a form of compensation, which aligns better with the 1099-NEC’s scope as the dedicated compensation reporting form.
If you currently report golden parachute payments on 1099-MISC, you will need to shift that reporting to 1099-NEC for tax year 2026. For full details on the 1099-NEC changes, see our companion article: Draft 1099-NEC for 2026: New Boxes for Tips, Overtime, and Golden Parachute Payments.
Renumbered Boxes
The addition of the new tip and overtime boxes and the removal of the golden parachute box caused a cascade of renumbering in the lower portion of the form. This is the change most likely to cause filing errors if your software, spreadsheet templates, or import processes use hardcoded box numbers:
| Field | Current Box (TY 2024/2025) | New Box (TY 2026 Draft) |
|---|---|---|
| Excess golden parachute payments | Box 13 | Moved to 1099-NEC Box 3 |
| Cash tips | Did not exist | NEW Box 13a |
| TTOC | Did not exist | NEW Box 13b |
| Overtime compensation | Did not exist | NEW Box 14 |
| Nonqualified deferred compensation | Box 14 | Box 15 |
| State tax withheld | Box 15 | Box 16 |
| State/Payer’s state no. | Box 16 | Box 17 |
| State income | Box 17 | Box 18 |
Who Is Actually Affected?
The impact varies depending on which boxes you use today:
All 1099-MISC filers need to update their software and be aware that box numbers shifted from 13 onward. Even if you never use the new tip or overtime boxes, the renumbering of state reporting fields (from Boxes 15-17 to 16-18) and nonqualified deferred compensation (from Box 14 to 15) will affect your data mappings and import templates.
The new tip/overtime boxes (13a, 13b, 14) will be relevant in limited cases on the 1099-MISC. The tip and overtime amounts are subsets of Box 3 (Other income), so they only apply when miscellaneous payments include a tip or overtime component. Filers who only use Boxes 1 (Rents), 2 (Royalties), 6 (Medical payments), or 10 (Attorney proceeds) will leave these new boxes blank.
Golden parachute filers must act. If you currently report excess golden parachute payments in 1099-MISC Box 13, that entire reporting workflow must move to the 1099-NEC for tax year 2026.
For a refresher on when to use 1099-MISC versus 1099-NEC, see 1099-NEC vs. 1099-MISC: What’s the Difference?
What Filers Should Do Now
1. Audit Your Current 1099-MISC Reporting
Review which boxes you currently use. If you report in Box 13 (golden parachute) or Box 14 (nonqualified deferred compensation), your reporting will shift for tax year 2026:
- Golden parachute payments move to 1099-NEC Box 3
- Nonqualified deferred compensation moves from Box 14 to Box 15
- State fields move from Boxes 15-17 to Boxes 16-18
2. Update System Mappings
If your payroll or accounting software maps data to specific box numbers, every mapping from Box 13 onward needs to be updated. This is the most error-prone part of the transition. A system that still writes nonqualified deferred compensation to Box 14 will instead be writing to the new “Overtime compensation” box — producing incorrect filings. Test your updated mappings thoroughly before filing season.
3. Start Tracking Tips and Overtime (If Applicable)
If any of your 1099-MISC recipients earn tips or overtime, you will need to separately track those amounts during 2026. For most filers this will not apply. But if you report Box 3 “Other income” that could include tip or overtime components, work with your accounting team to set up the right categories now.
4. Monitor for the Final Form
This is a draft — do not file it. The IRS will publish the final version after OMB approval. Watch for updates at IRS.gov/Form1099MISC.
Filing Deadlines
The 1099-MISC filing deadlines for tax year 2026 remain unchanged:
- January 31, 2027: Deadline to furnish Copy B to recipients
- February 28, 2027: Deadline to file with the IRS (paper)
- March 31, 2027: Deadline to file with the IRS (electronic)
Complete Box Reference: 2025 vs. 2026
For a quick-reference lookup of every box on the form. Boxes 1 through 12 are unchanged; the highlighted rows show everything that moved or was added. The “Previously” column shows where each field lived on the current form:
| 2026 Box | Field | Previously |
|---|---|---|
| 1-12 | Rents, Royalties, Other income, Federal income tax withheld, Fishing boat proceeds, Medical/health care, Direct sales, Substitute payments, Crop insurance, Attorney proceeds, Fish for resale, Section 409A deferrals | Same box numbers — unchanged |
| 13a | Cash tips | NEW (replaces old Box 13: golden parachute) |
| 13b | TTOC | NEW |
| 14 | Overtime compensation | NEW (replaces old Box 14: NQDC) |
| 15 | Nonqualified deferred compensation | Was Box 14 |
| 16 | State tax withheld | Was Box 15 |
| 17 | State/Payer’s state no. | Was Box 16 |
| 18 | State income | Was Box 17 |
Excess golden parachute payments (old Box 13) moved to Form 1099-NEC, Box 3.
Official IRS Resources
- Draft Form 1099-MISC (Rev. December 2026) [PDF]
- About Form 1099-MISC — IRS.gov
- All IRS Draft Forms
- General Instructions for Certain Information Returns
Bottom Line
The 2026 Form 1099-MISC is getting a meaningful overhaul from Box 13 onward. The new tip, TTOC, and overtime fields reflect the No Tax on Tips and No Tax on Overtime provisions now in federal law, while the golden parachute shift to 1099-NEC is a long-overdue alignment.
The most important action item is not the new boxes themselves — most filers will leave them blank. It is the box renumbering. Any system, template, or integration that references Box 13 through Box 17 will produce incorrect filings if not updated. Audit your mappings now, and you will avoid rejected returns in January.
BoomTax supports e-filing for all 1099 form types, including 1099-MISC. When the 2026 form is finalized, BoomTax will fully support the new tip, overtime, and renumbered boxes. Get started at BoomTax.com.
BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.
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