What changed
The IRS instructions for Forms 1099-MISC and 1099-NEC (revision dated December 2026) say that for tax years beginning after 2025 the minimum reporting threshold for these payments rose to $2,000, and may be adjusted for inflation from 2027. That includes Box 3, other income, which covers prizes and awards. The previous threshold was $600.
The instructions say: “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.” The change comes from Public Law 119-21, the One, Big, Beautiful Bill.
When
The law was signed on Jul 4, 2025; the higher threshold applies to payments made from Jan 1, 2026. We read the current IRS instructions on Oct 6, 2026. This post is more than 90 days old and is kept as background.
Who is affected
US referrers who receive cash rewards, if the payer reports them on a 1099-MISC. At $100 per referral, it would take more than 19 rewards in 2026 to cross $2,000 from one payer.
What it means for you
If SpaceX or its payment processor reports referral cash on a 1099-MISC, most referrers will now stay under the threshold and won’t receive one. Not receiving a form doesn’t change whether the money is income; the IRS says all income is taxable unless the law excludes it.
The referral terms leave tax to the referrer: rewards come with no tax included or withheld. We have not been able to confirm which form, if any, the payer uses, so treat the threshold as background rather than a promise of no paperwork.
What to do now
Count your 2026 cash rewards. If they approach $2,000, expect that a form might be issued and keep your own records either way. Ask a tax professional for advice on your situation.
What stays the same
The referral terms’ tax wording and the 1099-K threshold ($20,000 and 200 transactions).
What we don’t know yet
Whether referral cash is reported on a 1099-MISC, a 1099-K, or neither, and how the inflation adjustment from 2027 will work.
How to check it yourself
Read the “What’s New” section of the IRS Instructions for Forms 1099-MISC and 1099-NEC on irs.gov; it states the $2,000 threshold and cites the law. Keep your own count of referral cash received in 2026 from your account and bank statements. The referral terms’ tax wording is in the US Referral Program Terms on starlink.com.