1099-NEC: a client paid you
A business that paid you $2,000 or more for services in 2026 sends you a 1099-NEC, usually by January 31. A copy goes to the IRS too.
The $2,000 line is new. For years the threshold was $600. The One Big Beautiful Bill Act raised it to $2,000 for payments made in 2026 and later, and it adjusts for inflation after 2026. Fewer forms will go out, but remember: the form is paperwork. Income under $2,000 from a client is still taxable income.
1099-K: an app or platform paid you
Payment apps and online marketplaces (platforms like PayPal, Venmo, and Cash App for business payments, or a marketplace that pays you for sales) report with a 1099-K. The federal rule for 2026: you get one when your payments for goods and services pass $20,000 AND 200 transactions in the year.
Personal payments are not what this form is for. Money your family sends you for dinner or rent is not business income and does not belong on a 1099-K. A few states use lower 1099-K thresholds than the federal one, so a form can show up sooner depending on your state.
The two side by side
| 1099-NEC | 1099-K | |
|---|---|---|
| Who sends it | A client (a business that hired you) | A payment app or marketplace |
| For what | Pay for your services | Payments for goods and services run through the platform |
| 2026 threshold | $2,000 or more | Over $20,000 and over 200 transactions (federal) |
| When | By January 31 | By January 31 |
Can you get both?
Yes, easily. One client pays you $3,000 by check (1099-NEC from the client). Your other clients pay through an app that passes the federal line (1099-K from the app). Both forms report pieces of the same income. Your job is to report your true total once, not to add forms together blindly.
If a form is wrong
- Contact the sender right away and ask for a corrected form. A wrong 1099-K that includes personal payments is the most common case.
- Keep your own records all year: who paid you, how, and how much. Your records are your proof.
- Report your real income on your return, and keep the paperwork showing why it differs from a form if it does.
One sentence to remember: forms report income. They do not create it, and a missing form does not erase it.
Put your number to work
Run your own income through the free calculator, then track every payment with the free tracker from Anchella Bookkeeping.
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Written by Anchella
Anchella is a professional bookkeeper specializing in financial management for freelancers and self-employed professionals. She built setaxcalc.com to help independent workers understand and plan for their taxes year-round.