Didn’t receive a tax form?
Content creators may find themselves in a situation where the platform has not provided them with a tax form like 1099-NEC or 1099-K. This situation may result in major confusion when the tax season comes.
General Reasons Why You May Not Receive a Tax Form
- Earnings Below the Threshold: Platforms usually share a 1099-NEC form only if the earnings exceed $600 in a calendar year. In parallel, a 1099-K is issued if $600 or more is received from third-party payment processors.
- Cash Payments: Cash or other informal methods may not trigger an official tax form from the payer.
- Inaccurate or Missing Information: If the Taxpayer Identification Number (TIN) or other details are incorrect the payer may not issue a tax form.
Essential Actions if No Tax Form Is Received
Taxpayers are still legally obligated to report all income even if they do not receive any tax form from the platform. There are typical activities that are applicable in all scenarios for full compliance status:
- Tracking All Income: Detailed records of entire payment transactions in the relevant year should be kept regardless of whether a form is issued.
- Bank and Payment Processor Records: Transaction histories like on PayPal or Venmo can lend a helping hand in substantiating the income.
- Schedule C: Independent creators must report income and deductible expenses on Schedule C.
- Set Aside Funds: It is recommendable to reserve a portion of the income (around 20–30%) to cover self-employment taxes and other potential liabilities.
Look for Professional Assistance
If you are a content creator unsure about how to manage missing tax forms, tax advisors might have an accelerating impact on the process. Tax professionals can:
- Maximize deductions specific to content creators.
- Establish full compliance with the IRS regulations.
- Avoid mistakes that can result in penalty payments, interest fees or audits.