1099-NEC vs 1099-K

Estimate only, not tax advice. Check IRS.gov or a tax professional before you pay.

Both forms report money you were paid, but they come from different places.

	Form 1099-NEC	Form 1099-K
Who sends it	A business that paid you directly for services	A payment card company, payment app or online marketplace
Threshold for 2026	$2,000 or more from one payer for tax years beginning after 2025 (was $600)	Card payments: any amount. Apps and marketplaces: over $20,000 in more than 200 transactions
Deadline to send it to you	January 31	January 31

Don't count the same money twice

Under the IRS 1099-NEC instructions, payments made by card or through a payment network are reported on the 1099-K, not the 1099-NEC. If a client paid you through a payment app, that money belongs on the app's 1099-K. Keep your own records of which client paid how, and report each dollar once.

No form doesn't mean no tax

Below the thresholds you may get no form at all, but the IRS is explicit: you must report all income from goods or services either way. Personal payments from friends and family, like gifts or splitting a bill, aren't income.

Both are self-employment income

Business income on either form goes on your Schedule C. Your profit is subject to self-employment tax and income tax, and you should pay toward it quarterly.

Run your own numbers

Estimate only, not tax advice. Figures are for tax year 2026 from IRS sources (Form 1040-ES, Rev. Proc. 2025-32 and the pages listed under Sources) and the SSA. Confirm with IRS.gov or a tax professional.

Sources: IRS Instructions for Forms 1099-MISC and 1099-NEC · IRS: Understanding your Form 1099-K

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