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did the 1099-k rules change? what gig workers owe

Taxes · Jun 8, 2026 · 3 min read

what actually changed

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 The 2025 federal tax law (the One Big Beautiful Bill) repealed that and brought back the old, much higher threshold.

• Form 1099-K now goes out only if you made more than $20,000 AND more than 200 transactions on a single platform in the year. This starts with 2025 payments — the forms you receive in early 2026.
• Separately, the 1099-NEC / 1099-MISC threshold rose from $600 to $2,000, effective tax year 2026 (and adjusted for inflation after that).

the trap: no form does not mean no tax

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.

• If your net self-employment earnings are $400 or more, you are required to file a tax return and pay self-employment tax — form or no form.
• The apps still show your earnings in their own dashboards, and you are responsible for that income even if no 1099-K lands in your mailbox.

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.

what you still owe as a gig worker

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 above

Self-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.

track it yourself, because the forms will not

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.

track your gig income free →

frequently asked questions

did the $600 1099-k rule go away?

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 The 2025 tax law repealed the $600 threshold and restored it to more than $20,000 and more than 200 transactions on a single platform, starting with 2025 payments reported in early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.

do i owe tax if i do not get a 1099-k?

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.

what is the difference between a 1099-k and a 1099-nec?

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.

how much should i set aside for gig taxes?

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.

when does the new threshold start?

It applies to 2025 payments — the 1099-K forms you receive in early 2026 — and going forward.

facts checked Jun 8, 2026. general guidance, not tax or legal advice.