What's the difference between a 1099-NEC and a 1099-K?

Both report income to you and the IRS, but from different sources. A 1099-NEC reports nonemployee compensation — money a client or company paid you directly for services, typically $600 or more from that payer. A 1099-K reports payments processed through third-party platforms and payment apps — think PayPal, Stripe, Venmo for business, or marketplaces — and reflects gross transaction volume. The risk is double-counting: if a client paid you through PayPal and also issued a 1099-NEC, the same income could appear on both forms. The IRS expects you to report all your income regardless of which forms arrive, but reconcile carefully so you don't pay tax twice. The 1099-K reporting threshold has been in flux as the IRS phases in lower limits, so you may start receiving them for smaller amounts. Keep your own records as the source of truth.