1099-NEC vs 1099-K

The short version

• 1099-NEC reports payments to you as a contractor, such as freelance work or fees from a company that hired you.
• 1099-K reports payments received through a payment app or online marketplace, such as card sales or marketplace payouts.

Some gig platforms send a 1099-NEC, some a 1099-K, and some send neither if you were paid less than the threshold. The tax rules do not depend on the form.

1099-NEC

A business that pays you for services generally has to send a 1099-NEC if it paid you at least a threshold amount during the year. The threshold was $600 and is scheduled to rise to $2,000 for payments made after 2025. Ask your payer which amount applies.

1099-K

Payment processors and marketplaces report your gross payments. The threshold has changed several times in recent years, and current law returned it to $20,000 and more than 200 transactions. Because rules have moved, check the IRS page for the year you are filing.

The 1099-K shows gross payments, often before platform fees and refunds. Your taxable income is your profit, so fees and costs belong in your expenses.

If you get no form

You still must report the income. Keep your own records of what you earned, from payout histories and bank deposits.

If the form is wrong

If a form shows an amount that does not match what you received, contact the payer for a corrected form. If you cannot get one, report the correct figures and keep your proof.

What to do with the number

1. Add every source of self-employment income, with or without forms.
2. Subtract your business expenses to find net profit.
3. Use the self-employment tax calculator to estimate what you owe and what to pay each quarter.

Frequently asked questions

Do I owe tax if I did not get a 1099?

Yes. Income is taxable whether or not you receive a form. If your net self-employment profit is $400 or more, you owe self-employment tax.

Is a 1099-K the same as income?

It reports gross payments received. Part of it may be refunds, personal transfers or amounts already offset by costs, so use it as a starting point, not as your profit.

Can I get both forms in one year?

Yes, if you are paid by different sources. Each shows its own total.

What if a form arrives with someone else’s income?

Contact the payer to correct it, and do not report income that was never yours.

Sources

• IRS: About Form 1099-NEC
• IRS: Understanding your Form 1099-K
• IRS: Gig economy tax center
• IRS: Self-employment tax (Social Security and Medicare)

General information, not tax advice. See our disclaimer.

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