🧾1099s: one last dance with $600

That's right baby!
This is the last year you have to pretend that $600 is a meaningful number.

Starting this year (2026), the new 1099 limit is $2,000 (and it's indexed for inflation).

Fun Fact: the $600 limit was originally set back in 1954. If they’d adjusted it for inflation, today’s number would be closer to $6,800.
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But nooooo, Congress decided to go for “kinda better” and ended up landing on “still annoying.”

Here's what you actually need to know:

🧾 Pay someone $600 or more in 2025?​
→ Get their W-9, so you can issue them a 1099. No W-9 = no mercy.

📅 Deadline to send 1099s:​
→ January 31, 2025. To the IRS and the contractor.

💻 Filed more than 10?​
→ You must file electronically. No more paper pushing.

🧮 Using software like QuickBooks?​
→ It’ll usually handle 1099s for you (unless you’ve been clicking “Remind me later” since July.)

Next year, $2,000 is the new number you get to hate, but only for one year. Inflation finally came for your paperwork.

🔓1099‑DA, The IRS Wants Your Crypto Receipts

Congress finally said, "We're done playing crypto hide-and-seek", and they are sending the IRS ⚠️ out to deliver the message.

Say hello to the newest snitch in the tax form family: Form 1099‑DA (which stands for Digital Assets).

Starting in 2026 (for the 2025 tax year), crypto brokers like Coinbase, Kraken, and any other centralized exchange pretending to be a bank, will start sending 1099‑DAs to both you and the IRS every time you sell, trade, or dispose of digital assets.

Here’s what's up:

🧾 Sell or trade crypto in 2025?​
→ Look for a 1099‑DA by mid-February

📉 Will it show gains or losses?​
→ Maybe, maybe not. For the first year, it must show gross proceeds but doesn't have to track cost basis (yup, you're still going to have to pay for that fancy Crypto Tax Software again).

📑 What counts as a digital asset?​
→ Bitcoin, Ethereum, stablecoins, NFTs, meme coins, etc. (basically anything that lives on a blockchain and can be traded for value.)

⏱ Coming in 2027:​
→ Brokers will start reporting cost basis too (for covered assets). The crypto-tracking arms race has begun.

What does this all mean: just like traditional brokerages (Fidelity and Vanguard), Coinbase, and the rest of the centralized-exchange folks are forced into the fold.

I can't say I'm shocked, we all saw this day coming, we were just hoping it would just be a while longer.

So, you better start reconciling those wallets sooner, rather than later.

Market Highlights since beginning of the year

First 11 days of the year, and the market is up. Let's remember not get too excited, never know what's going to happing this week.

Market up a bit ~ S&P $6,916 (+0.97%) ~ NASDAQ $23,501 (+1.41%) Looks like USD is in trubs... ~ GOLD $5,063 (+7.70%) ~ Silver $107.60 (+14.35%) ​

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What's been going on with your Favorite CPA

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Here is the podcast I promised. Tt's currently on YouTube, and I'll be pushing the audio to Spotify next week (after I create a Spotify account.)

Hope you enjoy it!

Talk to you guys soon ❤️

Romeo Razi, CPA ​Taxedright.com​

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600 1st Ave, Ste 330 PMB 92768, Seattle, WA 98104-2246
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