breadmaxxer · learn
For a few years, gig and delivery workers were bracing for a $600 Form 1099-K threshold — get paid more than $600 through an app and a tax form would follow. The 2025 federal tax law (the One Big Beautiful Bill) repealed that and brought back the old, much higher threshold.
This is the part that trips people up. A higher threshold means fewer forms, not less tax. The underlying IRS rule did not change: all of your income is taxable whether or not a form reports it.
So the change is real paperwork relief, not a tax cut. If anything it puts more of the tracking on you, because fewer forms will arrive to do it for you.
Net gig profit (after expenses) ≥ $400 → you must file
Self-employment tax = 15.3% of net profit
Income tax = on top, based on your bracket
1099-K received? = changes none of the aboveSelf-employment tax alone is 15.3% with nothing withheld, so the safe move is to set aside 25–30% of your gig profit as you earn it. Your car miles are deductible against that profit — track them, because mileage is often a driver’s biggest write-off.
With the threshold back at $20,000, most part-time drivers and shoppers will get no 1099-K at all — which means the only record of what you made and what you owe is the one you keep. A running total of your income, plus a tax bucket you fill as you go, turns tax season from a guessing game into a number you already have.
Yes. The 2025 tax law repealed the $600 threshold and restored it to more than $20,000 and more than 200 transactions on a single platform, starting with 2025 payments reported in early 2026.
Yes. All income is taxable whether or not a form reports it. If your net self-employment earnings are $400 or more, you must file a return and pay self-employment tax even with no 1099-K.
A 1099-K reports payments processed through a platform or card network; a 1099-NEC reports nonemployee pay directly from a company. The 1099-NEC/MISC threshold rose from $600 to $2,000 starting in tax year 2026.
Around 25–30% of your net profit. Self-employment tax is 15.3% by itself, with nothing withheld, so saving as you go avoids a surprise bill.
It applies to 2025 payments — the 1099-K forms you receive in early 2026 — and going forward.
Yes. Breadmaxxer tracks your gig income as it lands and calculates the percentage to set aside for taxes automatically, so the bill — whether or not a 1099-K shows up — is a number you already know instead of a surprise. Free to start.