1099 Tax Explained: What Freelancers Need to Know

Key 1099 forms for freelancers: • 1099-NEC: reports non-employee compensation of $600+ (most common for freelancers) • 1099-K: reports payment card/third-party transactions over $600 (PayPal, Stripe, etc.) • 1099-MISC: reports other income types (rent, royalties, prizes)

Clients send 1099-NECs by January 31. You should receive them by early February.

1. Verify amounts match your records 2. Report ALL income on Schedule C — even if you didn't receive a 1099 3. Don't double-count income reported on both 1099-NEC and 1099-K 4. If amounts are wrong, contact the payer for a corrected 1099 5. Keep 1099s with your tax records for at least 3 years

Q: What if I earned less than $600 from a client? A: You still owe tax — the $600 limit is for the client's reporting obligation, not your tax obligation.

Q: What if I didn't receive a 1099? A: You must still report the income. Track your own records independently.

Q: Do international clients send 1099s? A: No — only US-based payers. But you still report the income.