Taxes on Small Online Income: 1099-K, 1099-NEC, and You
A common misunderstanding: "I did not get a form, so I do not have to report it." General information for US readers, and not tax advice.
Not tax advice. This article is general information for people in the United States. It cannot account for your situation. Tax rules change, so check the linked IRS pages, or ask a qualified tax professional, before you file.
The key principle
In general, income you earn is taxable in the US whether or not anyone sends you a form. The IRS says that no matter the amount of reported payments, if you receive payments for selling goods or services you must report all income on your tax return. A form is a reporting tool for the payer, not a permission slip. Earnings from surveys, offers, referral bonuses, research studies, and gig tasks can all be income. Whether a particular item is taxable, and how, depends on facts we cannot assess, so treat what follows as a map.
The forms you might see
| Form | Who sends it | Current threshold (as we verified) |
|---|---|---|
| 1099-NEC | A business that paid you for services as a non-employee | $2,000 or more, for payments made after December 31, 2025 (previously $600) |
| 1099-MISC | A payer reporting things such as prizes, awards and other income | The IRS instructions for 1099-MISC and 1099-NEC are combined; the threshold for many boxes is also $2,000 from 2026, but check the instructions for your box |
| 1099-K | A payment card processor or third-party settlement organization such as a payment app or marketplace | For third-party network payments: more than $20,000 and more than 200 transactions. Payment card transactions are reported at any amount. |
| W-2 or none | Employers; or nobody | Not applicable to platform income, which is usually not employment |
The 1099-K figure requires a comment, because a lower $600 threshold was widely reported in recent years. The IRS published guidance that the One, Big, Beautiful Bill reverted the threshold to $20,000 and 200 transactions for third-party settlement organizations. The 1099-NEC and 1099-MISC threshold moved to $2,000 for payments after 2025 according to IRS instructions. Because these are current rules, confirm the numbers on irs.gov when you file.
Small income, no form: still report it
If you earned $180 from surveys and offers and no company sent you a form, the income may still belong on your return. Payers report to the IRS only above certain thresholds, and many small earning platforms do not send forms at all. The absence of a form does not remove the requirement in principle. Records are what protect you.
Where it usually goes
Self-employment style income, such as payments for tasks, is commonly reported on Schedule C, with self-employment tax calculated on Schedule SE. The IRS states that you must file Schedule SE and pay self-employment tax if your net earnings from self-employment were $400 or more; the self-employment tax rate is 15.3%. Other kinds of income, such as certain rewards, may be reported as "other income" on Schedule 1. Which applies to you depends on whether your activity is a trade or business, and a professional can help decide that.
What may or may not count as income
- Cash payments for surveys, tasks or testing: generally treated as income.
- Gift cards received as a reward for work: generally treated as income at fair value.
- Referral bonuses: generally treated as income when they are payments for referring someone.
- Cashback on your own purchases: often treated by tax guidance as a reduction in the price you paid rather than income, but this is a question for a tax professional in your circumstances, and we did not verify the position on specific programs.
- Items you sell at a loss: different rules apply. Not relevant to task income.
Records to keep
- The platform name and the date and amount of each payout.
- Screenshots or emails confirming payment.
- The time you spent, if you may be treated as running a business.
- Costs directly related to the activity, such as a dedicated phone plan share, if you plan to deduct them (get professional advice first).
- Any tax forms received, kept alongside your return.
Compare your own records with any 1099 you receive. Payers can make mistakes. If a form is incorrect, contact the payer for a corrected form rather than ignoring it.
Practical tips
- Set aside a portion of each payout if you expect to owe. What percentage is right depends on your income and filing status.
- Pay attention to estimated tax payments if your side income is meaningful. The IRS has guidance on when they are required.
- Free filing options exist for many taxpayers; check the IRS website for what applies to your income.
- Be alert to scams claiming to be "tax help": the IRS does not demand payment by gift card.
How this relates to ScrollEarn
ScrollEarn pays members through PayPal or gift cards after manual review. We are a small company; whether we would issue a tax form to any member depends on the payment amounts and the law at the time, and we make no promise here about that. Read our payout hold rules for current terms. For how payouts arrive, see how ScrollEarn payouts work, and to compare payout methods read PayPal vs gift cards vs bank. For how much you might earn to begin with, see hourly ranges.
Again: this is general information and not tax advice. A licensed tax professional or the IRS can answer questions about your own return.
Frequently asked questions
Do I have to report income if I did not receive a 1099?
In general yes. The IRS says all income from selling goods or services must be reported regardless of amount or whether a form was issued. Ask a tax professional about your situation.
What is the current 1099-K threshold?
For third-party settlement organizations, the IRS states the threshold is more than $20,000 and more than 200 transactions. Payment card transactions have no de minimis threshold. Confirm on irs.gov.
What is the 1099-NEC threshold?
For payments made after December 31, 2025, the reporting threshold is $2,000, according to the IRS instructions for Forms 1099-MISC and 1099-NEC.
Is this tax advice?
No. It is general educational information. Consult a qualified tax professional or the IRS for your circumstances.
Keep reading
- PayPal vs Gift Cards vs Bank: The Best Way to Cash Out
- How ScrollEarn Payouts Work: Pending, Available, and Paid
- How Cashback and Referral Programs Actually Work
- Earning guides
- Compare earning categories
Sources
- IRS: FAQs on Form 1099-K threshold under the One, Big, Beautiful Bill
- IRS: Form 1099-K FAQs for third-party filers
- IRS: Instructions for Forms 1099-MISC and 1099-NEC
- IRS: Self-employment tax (Schedule SE $400 threshold, 15.3% rate)
This article is general information from the ScrollEarn Inc. editorial team, not financial, legal, or tax advice. Earnings figures are typical or reported ranges, not guarantees. See our earnings disclaimer.