Understanding 1099 Forms: What Every Gig Worker Should Know

Receiving multiple 1099 forms from different platforms can be confusing. This guide explains what each form represents and how to reconcile them for accurate tax filing.

Types of 1099 Forms

1. 1099-NEC

   • Issued for non-employee compensation of $600 or more. Common for freelancers and contractors.

2. 1099-K

   • Reports payment card and third-party network transactions. As of 2023, the reporting threshold is $600.

3. Missing 1099 Forms

   • You must report all income, even if you don’t receive a form.
     

Karen earns $25,000 as a freelance graphic designer and receives a 1099-NEC. She also earns $10,000 through a payment platform, reported on a 1099-K. By reconciling these forms with her records, she ensures accurate reporting and avoids IRS scrutiny.

Tips for Managing 1099 Forms

• Cross-check forms against your records for discrepancies.

• Report all income, even amounts below $600.

• Use accounting software to streamline the process.
  

How Arc&Ledger Can Help We simplify the process of reconciling multiple income sources for gig workers. Contact us to ensure accurate and stress-free tax filing.