Gig Work and Form 1099-NEC: How to Report Your 2025 Income
Published November 4, 2026
Gig work, such as driving, delivery, or freelance jobs, is usually self-employment. You report that income on your tax return even when you do not get a form. This guide explains Form 1099-NEC, the reporting steps, and the self-employment tax for the 2025 tax year. IRS: About Form 1099-NEC
What Form 1099-NEC is
A business uses Form 1099-NEC to report nonemployee compensation. This is pay for services by someone who is not your employee. Box 1 shows the total. For 2025, the payer must file a 1099-NEC if it paid you $600 or more for services in the year. IRS: Instructions for Forms 1099-MISC and 1099-NEC (2025)
Payments made in 2026 follow a different threshold under federal law passed in 2025. This post covers 2025 payments only.
You still report the income if you get no form
A 1099-NEC is a copy of what a payer reports to the IRS. It is not the only record that counts. The IRS says a payee must report all income from a trade or business, unless the law excludes it, even when the total is below the reporting threshold. IRS: business tax provisions video text script
Some platforms send Form 1099-K instead of, or in addition to, a 1099-NEC. Read our post on Form 1099-K: what it is and what to do before you assume which form you will get.
Where the income goes on your return
Most gig income is reported on Schedule C, which shows business income and expenses. Your net profit from Schedule C then flows to your Form 1040. Self-employment tax is figured on Schedule SE. IRS: Publication 596
Business expenses lower your profit
Business expenses you paid to earn gig income, such as supplies, phone costs for work, and vehicle costs, are generally deducted on Schedule C. Your Form 1099-NEC amount may be higher than your net profit. Keep records for every expense you claim. IRS: Publication 596 (Schedule C)
Self-employment tax
If your net earnings from self-employment are $400 or more, you must file Schedule SE and pay self-employment tax. Amounts reported in Box 1 of a 1099-NEC are generally subject to this tax. IRS: Instructions for Forms 1099-MISC and 1099-NEC
Self-employed workers who may qualify for the earned income tax credit must complete Schedule SE correctly. If they do not, they may not get the full credit. See our EITC basics post. IRS: Publication 596
Estimated tax payments
Income with no withholding can leave you owing at filing time. If you expect to owe, you may need to make estimated payments during the year. For the payment calendar and the safe harbor rules, read Quarterly Estimated Taxes for Freelancers.
If a form is missing or wrong
If a payer does not send a 1099-NEC, or the form shows the wrong name, number, or amount, contact the payer and ask for a corrected form. Do not skip the income. Compare the totals from each platform with your own payment history, and report the amount you actually received for services.
Keep records that support your numbers
Keep your payment history from each platform or client, and keep receipts for business costs. Track miles and expenses as you go. Our post on mileage and expense records for gig drivers lists what to keep.
Checklist
- Collect every 1099-NEC, 1099-K, and payment summary for 2025.
- Add up the gross income from each platform or client, even without a form.
- Record business expenses and miles with dates and purposes.
- Report the net profit on Schedule C and complete Schedule SE.
- Check whether you need estimated payments for 2026.
General information, not advice for your return.
Sources: IRS: Instructions for Forms 1099-MISC and 1099-NEC, Rev. April 2025 (https://www.irs.gov/pub/irs-prior/i1099mec--2025.pdf); IRS: About Form 1099-NEC (https://www.irs.gov/forms-pubs/about-form-1099-nec); IRS: Publication 596, Earned Income Credit (https://www.irs.gov/publications/p596); IRS: One Big Beautiful Bill business tax provisions, video text script (https://www.irs.gov/es/newsroom/one-big-beautiful-bill-business-tax-provisions-youtube-video-text-script) This is general information, not advice about your specific return.
