1099-NEC and 1099-K: what gig workers should know
Gig workers can receive different 1099 forms, or none at all. This guide explains the two you are most likely to see, the reporting thresholds the IRS lists, and what to do with your income either way.
Form 1099-NEC
A business that pays you for services as a nonemployee reports the payments on Form 1099-NEC, in box 1a (Nonemployee Compensation). According to the IRS instructions, the reporting threshold is $2,000 for tax years beginning after 2025, and the IRS says it may be adjusted for inflation beginning in 2027. The instructions say the form is due to the IRS on or before January 31.
Form 1099-K
Payment apps and online marketplaces report payments on Form 1099-K. The IRS says they must report when payments exceed $20,000 in more than 200 transactions. The IRS defines the gross amount on the form as the total of reportable payment transactions without regard to adjustments for fees, refunds, and similar amounts, so the number on a 1099-K can be higher than what you actually kept.
You report income even without a form
The IRS says that whether or not you receive a Form 1099-K, you must still report any income on your tax return. The same applies to payments with no form at all. Keep your own records of what you earned from each platform.
What you file
Self-employed people generally use Schedule C (Form 1040) to report income or loss from a business they operated as a sole proprietor, including gig work, and Schedule SE to figure self-employment tax. The IRS says you have to file a return if your net earnings from self-employment were $400 or more.
Matching your records to the forms
Compare each form with your own totals before you file. A platform's form can include amounts you didn't keep, such as fees or refunded payments, and it can leave out cash tips and income from sources that don't send forms. Your own records are what you use to explain any difference.