4d (edited) • General Discussion
1099-K vs 1099-NEC. Let’s clear this up.
If you make money online, you might see new tax forms in 2026. That doesn’t mean you owe more tax. It means reporting rules changed.
Here’s the simple breakdown:
1099-K
This comes from payment platforms like Stripe (as payor for Skool), PayPal, Venmo (goods & services), Square, or Etsy.
- 2024 transactions: form issued if you’ve earned over $5,000
- 2025 transactions: over $2,500
- 2026 and later: over $600
It reports gross payments, not profit.
1099-NEC
This comes from businesses that pay you directly for services.
- Threshold stays at $600 for 2025
- No increase to $2,000 (that was proposed, not yet passed)
Important thing to remember:
Getting a 1099 does not create tax. You're taxed on profit, not the form total.
Think of the form like a receipt copy.The IRS just got the same copy you did.
Why this matters:
As the thresholds drop, even small side income gets reported.That makes basic bookkeeping more important than ever.
If you know your numbers, these forms are a non-issue.
See the chart 👇that summarizes this information for you.
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1099-K vs 1099-NEC. Let’s clear this up.
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