Plain-words guide

What is a 1099-K? And how is it different from a 1099-NEC?

Both forms tell the IRS what you were paid through an app. They count it in different ways, so the totals can differ.

Updated October 10, 2026 · Sources

The 1099-NEC

NEC stands for nonemployee compensation. That means pay to someone who works for themselves, not as an employee.

It shows what the app paid you for the year. Apps send one once they pay you $2,000 or more.

A 1099-K comes from a company that handles payments, like an app that takes payment from customers.

It shows the full amount of the payments, before any fees came out. So it can be bigger than what reached your bank.

For most apps, it comes when payments are over $20,000 and there are more than 200 of them in the year. Some states ask for it at a lower amount.

Some apps send both forms, for different kinds of pay. Each form covers its own part, so the same pay shouldn’t be on both.

Drivers commonly check each form against their own payout records, app by app.

The gap is often the app’s fees. Fees taken out of the pay can count as a business cost, which lowers your profit.

The app’s yearly tax summary usually lists them. Tax software, or whoever does your taxes, can show where they go on the return.

Tax Pit Stop’s tax-time pack sets each form beside the payouts you logged, so a gap is easy to spot.

The figures here are for the 2026 tax year, from IRS documents. Tax rules change from year to year.

The free calculator shows how much of each payout to set aside for your year, with the math. No sign-up.