What is a 1099?
A 1099 shows money you were paid that was not a regular paycheck. Drivers, freelancers, contractors and people with bank interest all get 1099s. Usually no tax was taken out, so you handle it yourself.
The 1099s you’re most likely to get
| Form | Who sends it | Example |
|---|---|---|
| 1099-NEC | A business that paid you as a contractor | A deli pays you to do its books |
| 1099-K | Apps and card processors (Uber, Lyft, PayPal) | Your rideshare earnings |
| 1099-MISC | Payers of rent, prizes and other income | A tenant business paying you rent |
| 1099-INT | Your bank | Interest on your savings account |
| 1099-G | The government | Unemployment benefits or a state refund |
Sources: IRS: About Form 1099-NEC · IRS: Understanding your Form 1099-K
Higher reporting thresholds
- Starting with 2026 payments, businesses generally send a 1099-NEC or 1099-MISC only once they pay you $2,000 or more (it used to be $600).
- The 1099-K threshold for apps and card processors is $20,000 and 200 transactions.
Important: all income is taxable even if you never get a 1099. The form is just a report; the income still counts.
Sources: NATP: Form 1099 $2,000 threshold · IRS: Understanding your Form 1099-K
Reporting 1099 income
Most 1099 work income goes on Schedule C (business profit or loss) with your Form 1040. You list what you earned, subtract your business expenses, and pay income tax plus self-employment tax on the profit.
Hamza drives for Uber and Lyft in Queens. His 1099-K forms show $52,000. He spent $14,000 on gas, repairs, TLC insurance and his phone. His profit on Schedule C is $38,000, and that is the number his tax is based on, not $52,000.
Sources: IRS: About Schedule C · IRS: Self-employment tax
Feels complicated? Worried about a mistake? We’ll do it for you.
Taxes are not rocket science, but one wrong box can shrink your refund or bring an IRS letter months later. If your return feels confusing, bring it to us. Book now for the coming season and we’ll prepare your 2026 return, filed in early 2027.
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Frequently asked
Do I pay tax on 1099 income?
Yes. You pay income tax and, for work income, self-employment tax. Usually nothing was withheld, so you may owe at filing time unless you paid quarterly.
What if my 1099 is wrong?
Contact the payer and ask for a corrected form. Report the correct income on your return and keep proof.
I’m a TLC driver. Can you do my 1099 taxes?
Yes. TLC and rideshare returns are one of our specialties. Book a free consultation.
Sources: IRS: About Form 1099-NEC · IRS: Understanding your Form 1099-K · NATP: Form 1099 $2,000 threshold · IRS: About Schedule C · IRS: Self-employment tax
Figures and rules on this page come from the official and published sources linked above, as of November 2026. People and numbers in the examples are made up to explain the idea. This page is general information, not tax or legal advice for your situation, and laws change; check the linked source or ask a licensed CPA before you act.
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