A 1099-NEC comes from a business that paid you for work as a contractor, while a 1099-K comes from the payment app, card processor or online sales platform that moved money to you for goods or services. Both report income to the IRS, but they have different thresholds and you should never count the same money twice.
If you freelance, drive, deliver or sell online, you can end up with both forms in the same January. People panic that they're being taxed twice. You aren't, as long as you understand what each form is and add them up the right way.
The difference in one table
| 1099-NEC | 1099-K | |
|---|---|---|
| Who sends it | The business that paid you for services | A payment app, online sales platform or card processor |
| What it reports | Nonemployee compensation: fees, commissions, prizes and awards for your work | Gross payments for goods or services that passed through them |
| Threshold | At least 2,000 dollars paid in 2026 (IRS instructions) | Over 20,000 dollars and more than 200 transactions for apps and platforms; any amount for direct card payments |
| Typical example | A client who pays you as a contractor; DoorDash for Dashers | PayPal, Venmo or Etsy-style platforms; Uber for trip earnings |
| Deadline to you | January 31 | January 31 |
What a 1099-NEC is
NEC stands for nonemployee compensation. When a business pays someone who isn't its employee for services, it reports that on Form 1099-NEC. The IRS instructions say a business files one for each person it paid at least 2,000 dollars in the course of its business, covering services (including parts and materials) and payments to attorneys. Box 1a holds the figure: fees, commissions, prizes and awards for work you did as a nonemployee.
To fill it in, the business asks you for a W-9 with your taxpayer ID. If you don't give one, the IRS says the payer has to withhold 24% as backup withholding. That's the moment many freelancers first meet the form: a new client asks for a W-9 before the first invoice.
What a 1099-K is
A 1099-K comes from whoever processed the money, not from your customer. The IRS lists two kinds of sender: payment card companies, and payment apps or online platforms, which it calls third party settlement organizations. Apps and platforms send one when your goods and services payments go over 20,000 dollars in more than 200 transactions, a rule the One Big Beautiful Bill restored retroactively. But if your customers pay you directly by card, the card processor sends one whatever the amount.
The IRS also says an app may send you a 1099-K for lower amounts, and some states have lower thresholds of their own, so don't assume you're below the radar.
The catch: one payment can show up on both
Here's the trap. Imagine a client pays your invoice through a payment app's goods and services option. The client might send you a 1099-NEC for the work, and the app might include the same payment in your 1099-K. If you add both forms together, you'll report that income twice. The IRS cares about your actual income, not the sum of your forms, so match each payment to one source in your records and report it once.
Real examples from gig apps
| Platform | What it sends |
|---|---|
| DoorDash (Dashers) | 1099-NEC for your delivery earnings |
| Uber and Uber Eats | 1099-K for trip or order earnings above the threshold, plus a 1099-NEC for referrals and promotions |
| PayPal or Venmo goods and services | 1099-K above the threshold |
| A small business client | 1099-NEC once it paid you at least 2,000 dollars in 2026 |
How to handle both forms at tax time
- List every 1099-NEC and 1099-K you receive.
- Pull your own records of what you were paid, by client and by platform.
- Mark any payment that appears on more than one form, so it's only counted once.
- Remove anything on a 1099-K that isn't income, such as a friend's repayment tagged by mistake or refunds.
- Report your total income and your business costs, whether or not every payment had a form.
No form at all?
Plenty of income never gets a form: a client below the 2,000 dollar mark, an app below 20,000 dollars. The IRS is clear that you must still report income whether or not a form arrives. The forms are the IRS's way of checking you; they aren't the rule for what's taxable.
Who files which form
It also helps to know that you don't file either form yourself as the person being paid. The payer files the 1099-NEC, and the app or processor files the 1099-K, each sending a copy to you and one to the IRS. Your job is to use them as a cross-check on your own records.
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My verdict
Think of the 1099-NEC as "who paid me for work" and the 1099-K as "which pipe the money came through". Keep your own income list and use the forms to check it, not build it. If you're running a side business, my freelancer tips, the tax side of an LLC and ways to cut business tax are worth a look.
Frequently asked questions
What is a 1099-NEC?
It's the IRS form a business uses to report what it paid a nonemployee, such as a freelancer or contractor, for services. For payments made in 2026, the IRS instructions set the filing point at 2,000 dollars.
What is the difference between a 1099-NEC and a 1099-K?
A 1099-NEC comes from the business that paid you for work. A 1099-K comes from the payment app, online platform or card processor that handled payments to you for goods or services.
Can I get both a 1099-NEC and a 1099-K?
Yes, and the same payment can appear on both. Report the income once, using your own records to match each payment.
What is the 1099-K threshold?
For payment apps and online platforms, over 20,000 dollars and more than 200 transactions. Card processors send one for any amount, and some states use lower thresholds.
When are 1099 forms due?
Payers must send both the 1099-NEC and the 1099-K to you by January 31.
Do I pay tax if I don't get a 1099?
Yes, if it's income. The IRS says you must report income whether or not you receive a form.
