1099-K vs 1099-NEC: Which Form You’ll Get and What to Do With It (2026)
This guide is general information, not tax advice. Reporting rules and state thresholds change, so confirm with a CPA or enrolled agent. Some links below are affiliate links; we may earn a commission at no cost to you, which never affects our picks.
Short answer: the 1099-K vs 1099-NEC difference is about how you were paid, not what you owe. A 1099-NEC comes from a company or client that paid you directly for your work ($2,000 or more in 2026). A 1099-K comes from a payment platform or app that processed payments for you ($20,000 and more than 200 transactions). Either way it goes on the same Schedule C, and you owe tax on all your income whether or not a form shows up.
Want to see what your gig income will cost in tax? Try the free Self-Employment Tax Calculator.
1099-K vs 1099-NEC at a glance
| Form 1099-NEC | Form 1099-K | |
|---|---|---|
| Who sends it | A business or client that paid you directly | A payment app, platform, or card processor |
| 2026 federal threshold | $2,000 or more | Over $20,000 and more than 200 transactions |
| What the number shows | What they paid you | Gross payments processed, before fees |
| Common senders | DoorDash, client businesses, bonus/referral pay from Uber and Lyft | Uber and Lyft ride earnings, Upwork, PayPal and Venmo business payments |
| Where it goes | Schedule C, line 1 | Schedule C, line 1 |
The 2026 thresholds (and why most part-timers get no form)
Two rule changes from the 2025 tax law matter here:
- 1099-NEC: $2,000. For payments made in 2026, businesses only have to send a 1099-NEC if they paid you $2,000 or more, up from $600. It will be adjusted for inflation starting in 2027.
- 1099-K: back to $20,000 and 200 transactions. The planned drop to $600 was cancelled. Platforms only send one if your payments topped $20,000 and more than 200 transactions.
The catch: a handful of states set their own, much lower 1099-K thresholds (Massachusetts, Maryland, Vermont, Virginia, and D.C. use $600, and Illinois uses $1,000), so you may still get a form in those states. Check your state’s rule.
The bigger catch: no form doesn’t mean no tax. The thresholds only decide whether a company has to report your pay to the IRS. You owe tax on every dollar of profit once your net self-employment earnings pass $400 for the year.
Which gig apps send which form
- Uber and Lyft: a 1099-K for ride (and Uber Eats) earnings if you pass $20,000 and 200 trips, plus a 1099-NEC for referral bonuses, quests, and promotions if those reach $2,000. Details in our Uber driver taxes and Lyft driver taxes guides.
- DoorDash: a 1099-NEC once you earn $2,000 or more. See DoorDash taxes.
- Instacart: usually a 1099-NEC, depending on how you’re paid. See Instacart shopper taxes.
- Upwork, Fiverr, and similar marketplaces: usually a 1099-K, since the platform processes the client’s payment.
- Direct clients: a 1099-NEC if they paid you $2,000 or more by check, bank transfer, or Zelle. If they paid by card or a payment app, the app reports it on a 1099-K instead, and the client shouldn’t send a 1099-NEC for the same money.
Forms are due to you by Jan. 31 (Feb. 1, 2027 this year, since the 31st is a Sunday). Most apps post them in your driver or account dashboard.
Why your 1099-K shows more than you earned
A 1099-K reports gross payments, the full amount customers paid before the platform took its cut. Your deposits are the net. That gap isn’t income you owe tax on: you report the gross and then deduct the platform’s fees and commissions as an expense. Skip that step and you’ll pay tax on money you never received.
Worked example: Jordan’s 2026 forms
Jordan drives for Uber, delivers for DoorDash, and does the occasional design job:
- Uber: $24,000 in rider payments over 1,100 trips → 1099-K for $24,000. Uber’s fees were $5,600, so only $18,400 hit Jordan’s bank.
- Uber promotions: $400 → under $2,000, so no 1099-NEC, but still taxable.
- DoorDash: $9,000 → 1099-NEC for $9,000.
- Design client: $1,500 by Zelle → under $2,000, so no form, but still taxable.
Jordan’s gross income is $34,900 ($24,000 + $400 + $9,000 + $1,500), even though only $33,400 appears on forms. After subtracting Uber’s $5,600 in fees, the starting point is $29,300, before mileage and other write-offs bring it down further.
How to report both on your tax return
1. Add up everything, form or no form
Start from your app dashboards and bank deposits, not just the forms. Add any income that didn’t come with a form, like small clients, cash tips, and promotions under the threshold.
2. Put it all on Schedule C, line 1
Both forms go into gross receipts on the same Schedule C. If you have different kinds of work (say, driving and graphic design), you can use one Schedule C if they’re the same business, or separate ones if they’re truly different. Tax software asks you as you go.
3. Deduct platform fees and every business expense
Subtract the fees the 1099-K included, then your mileage, phone, and supplies. Our 2026 write-off list covers what counts, and the Mileage Deduction Calculator shows your biggest one.
4. Don’t count the same money twice
If a client paid you through PayPal and also sent a 1099-NEC, the same dollars may appear on both forms. Report the income once and keep records showing the overlap. Same goes for business money moved between your own accounts.
5. Use software that handles both forms
Self-employed tax software lets you enter each 1099 and walks you through fees and deductions. Our top value pick is FreeTaxUSA (free federal filing, including Schedule C); see all the options in Best Tax Software for Gig Workers, and the full walkthrough in How to File Your Taxes as a Gig Worker.
What to do if a form is wrong
- The amount is wrong or it’s in the wrong name: ask the company that sent it for a corrected form. Keep your own records either way.
- A 1099-K includes personal payments (like friends paying you back for dinner through a business account): report the amount and back it out on Schedule 1 as the IRS instructs, with a note explaining it. Your tax software has a step for this.
- You expected a form and didn’t get one: you still report the income. Pull your totals from the app’s tax summary.
FAQ
What is the difference between 1099-K vs 1099-NEC? A 1099-NEC reports money a business or client paid you directly for your work, sent when it’s $2,000 or more in 2026. A 1099-K reports payments processed through an app or payment platform, sent when they top $20,000 and 200 transactions. Both go on Schedule C, and both are taxed the same way.
Can I get both a 1099-K and a 1099-NEC from the same app? Yes. Uber and Lyft can send a 1099-K for ride earnings and a separate 1099-NEC for referral bonuses, quests, and promotions. Report both on Schedule C. They cover different money, so they’re not double counting, but check the totals against your dashboard summary.
Do I have to report gig income if I didn’t get a 1099? Yes. The thresholds only decide whether the company reports your pay to the IRS. You owe tax on all your gig profit once your net self-employment earnings pass $400 for the year. Use your app’s annual tax summary and bank deposits to find your real total.
Why is my 1099-K higher than what I was paid? A 1099-K shows gross payments before the platform took its fees and commissions, so it’s usually higher than your deposits. Report the full amount, then deduct the platform’s fees as a business expense on Schedule C. That way you only pay tax on what you actually earned.
When should I receive my 1099 forms? Companies must send 1099-NEC and 1099-K forms by January 31. For 2026 income that’s February 1, 2027, because January 31 falls on a Sunday. Most gig apps post them in your driver or account dashboard and email you when they’re ready.
