A recent federal tax law change is prompting some fairs, livestock auctions, and Extension programs to notify 4-H and FFA families about how youth livestock sale proceeds may be reported to the Internal Revenue Service.
Despite recent social media claims, receiving a Form 1099-MISC for livestock sales is not a new requirement, nor does receiving one automatically mean a youth exhibitor owes taxes.
Beginning with payments made in 2026, the federal reporting threshold for Forms 1099-MISC and 1099-NEC increased from $600 to $2,000 under the One Big Beautiful Bill Act. Organizations generally are not required to issue one of these information returns unless payments to an individual reach at least $2,000 during the calendar year. The threshold will be adjusted for inflation beginning in 2027.
