01/05/2026
I saw a post that says you should not file early lest a 1099k arrive in February.
My reaction? If you are doing your bookkeeping, the 1099k won't matter because you will already know your income, and you can report it correctly on your tax return.
There are some self-employed people who depend on those who contract their services to do their bookkeeping for them.
How so?
They wait to get those 1099NEC forms from companies where they performed services and that's how they determine their income.
The problem with this, not everybody who you work for will send you a 1099NEC. If you determine your income based on 1099NEC, you may be under-reporting your income.
What if I, as a self-employed tax pro, determined my income based on 1099NEC forms? I wouldn't have to report anything because nobody sends me a 1099NEC.
I do my bookkeeping; I keep track of my income and expenses. I will receive 1099K forms from Square and PayPal but that is not how I determine my income. Much of my income doesn't even come via those two platforms, does that mean I don't have to report it?
All income is taxable, unless otherwise exempt. Receiving a 1099NEC form is not the threshold for reporting income.
It's not how you should determine your income. Do your bookkeeping. Make yourself audit safe if not audit proof.
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Originally written and posted on December 20, 2022 by Julie's Tax Service.