NTHL referees are treated as contractors with regards to the Internal Revenue Service for labor and tax purposes. If an individual receives game fees above the current IRS 1099-NEC (Non-Employee Compensation) threshold inside of a calendar year (CY), then a 1099-NEC is issued to that individual and the IRS. 1099-NEC forms are only issued when the aggregate sum of payments in a calendar year exceeds the dollar threshold for that calendar year.
Effective 7/4/2025: For CY 2026, the 1099-NEC threshold is $2000. For 2027 and subsequent years, this threshold is adjusted by inflation.
If an individual exceeds the IRS reporting threshold in a calendar year, an IRS W-9 or W-8 is required from that individual. The NTHL will reach out to retrieve that document (if not on file) and will issue any relevant 1099-NEC files to the individual and the IRS no later than the IRS constructive receipt deadline.
The current constructive receipt deadline in 31 January of the following year.
Increase in threshold for requiring filing of certain information returns and backup withholding. For tax years beginning after 2025, the minimum threshold amount for reporting certain payments required to be reported on certain information returns and/or perform backup withholding on those payments increased to $2,000 and will be adjusted for inflation beginning in calendar year 2027. Previously, the threshold amount was $600.
For more information on current 1099 guidance and thresholds, please visit the IRS website’s current 1099 Publication: https://www.irs.gov/pub/irs-pdf/p1099.pdf
For any additional questions or detailed guidance on your tax situation, we encourage you to reach out to your tax professional.
