I didn't receive a 1099-NEC, do I still owe tax on that income?

Contractor income can feel straightforward—until tax season hits. One of the most common points of confusion for independent contractors and small business owners is what to do when you don’t receive a 1099-NEC. 

A common assumption is: “If I didn’t get a 1099, I must not owe taxes on that income, right?”

Unfortunately, that’s not how it works. 

Many people confuse the $600 reporting threshold with a tax threshold—but they’re not the same thing. That $600 only determines whether a business is required to send you a 1099-NEC. It has nothing to do with whether you need to report the income. 

And with more people earning side income through freelance work, consulting, or project-based gigs, understanding how to handle untaxed income is more important than ever.

This article clears up that confusion. We’ll walk you through what it means to not receive a 1099-NEC, how to report that income anyway, and what to give your CPA so your return stays accurate—and audit-proof. 

I didn't receive a 1099-NEC, do I still owe tax on that income? 

Yes—even without a 1099-NEC in hand, you're still required to report the income you earned. 

When you work as an independent contractor, freelancer, or gig worker, the money you earn is considered self-employment income. That means it’s taxable—even if no one reports it to the IRS on your behalf. 

Self-employment income is subject to both income tax and self-employment tax (which covers Social Security and Medicare). So even small amounts—$200, $50, or even $5—technically need to be reported. 

The IRS doesn’t just rely on forms like the 1099-NEC to track income. They expect you to report all earnings, regardless of whether a client was required to send you anything. If you leave it off your return, you risk underreporting your income, which can lead to: 

• Notices and follow-ups from the IRS 
• Penalties or interest 
• Increased audit risk if mismatches are flagged 

If you earned the income, it belongs on your return—simple as that. Reporting it correctly now avoids much bigger problems later. 

How do I report income I earned as a contractor if I don't have a 1099-NEC? 

The good news is you don’t need a 1099-NEC to report your contractor income. If you’ve kept solid records, you already have everything you need to file correctly. 

Here’s how to do it: 

• Track everything: Total up what you earned from each client using your own records—bank deposits, bookkeeping software, invoices, even payment platforms like PayPal, Venmo, or Stripe. Whether you were paid by check, cash, direct deposit, or app transfers—it all counts as income. 
• Report it on Schedule C (Form 1040): This is the IRS form used by sole proprietors and independent contractors. You’ll enter your total income under “Gross Receipts” (Line 1), along with any other business income you earned during the year. 
• Include all business income, not just 1099 income: Even if a client didn’t send you a form, or paid you under the $600 threshold, the IRS still expects that income to be reported on your return. 
• What not to include: Don’t report personal gifts, non-taxable reimbursements (like mileage under an accountable plan), or W-2 income from an employer—those are handled separately. If you’re not sure whether something qualifies, your CPA can help you clarify what stays in and what gets left out. 

If you treat your records as the source of truth—not just your tax forms—you’ll be in good shape. 

What do I give to my CPA if I don't have a 1099-NEC? 

If a client didn’t issue you a 1099-NEC, your CPA can still prepare your return accurately. But they’ll need some help from you to paint a full picture of what you earned. 

Here’s what to share: 

• Bank statements or bookkeeping reports showing deposits from clients throughout the year 
• Invoices, spreadsheets, or client payment summaries, especially if you track income manually 
• Payment platform reports from tools like Stripe, PayPal, Venmo, Etsy, or Square 

The goal isn’t to hand over a perfect accounting file—it’s to make sure nothing gets missed. If you’ve been using bookkeeping software or tracking income in a spreadsheet, now’s the time to pull that info together. 

Accurate records help your CPA: 

• Report your income correctly (even without a 1099) 
• Match totals against your other forms 
• Maximize deductions and avoid overpaying 
• Document your earnings in case of IRS follow-up 

A good CPA knows what to ask for and how to fill in any blanks. You don’t need to figure it out alone—they just need clear, honest numbers to work from. 

What is the threshold for receiving a 1099-NEC? 

The IRS requires a business to issue a 1099-NEC if they paid you $600 or more in a calendar year for services—not goods. 

Here’s what that means in practice: 

• The $600 threshold applies per client, not in total. If you earned $400 from Client A and $700 from Client B, only Client B is required to send you a 1099-NEC. 
• That total is based on the full calendar year—not per payment. So, if a client paid you $200 three times during the year, the total of $600 meets the reporting requirement. Even if no single payment hits the threshold, the cumulative amount still triggers the need to file a 1099-NEC. 
• The rule applies to business payments. If your friend paid you to help move (personal payment), or someone reimbursed you for splitting dinner—those don’t count. 
• It applies to services, not goods. Selling physical products typically falls under other reporting rules (like 1099-K, if applicable). 
• You must be paid as a contractor, not an employee. If you’re on payroll, you’ll receive a W-2 instead. 

Keep in mind, this threshold applies to the payer—not you. Even if a form isn’t issued, that income still needs to be reported. 

I should have received a 1099-NEC but I didn't, what do I do? 

Sometimes a client makes a mistake or misses the deadline. If you were paid $600 or more and didn’t receive a 1099-NEC by the end of January, don’t panic—here’s what to do next: 

• Reach out to the client: Ask whether they sent the form and, if so, to which address or email. It may have gone to the wrong place, or they may not have realized they were required to file one. A quick check-in can resolve the issue without much effort. 
• Request a correction if needed: If you did receive the 1099-NEC but it shows the wrong amount or incorrect info (like your name or EIN), contact the payer and ask them to file a corrected version with the IRS. 
• Report the income anyway: Whether or not the form is corrected or sent at all, the IRS still expects to see that income on your return. Use your own records—bank statements, invoices, or payment app histories—to determine what you earned and report that amount accurately. 
• Tell your CPA: If you think a form is missing or something doesn’t add up, flag it for your CPA. They’ll help you determine whether it’s a simple oversight or something that needs to be documented further. They can also advise whether it’s necessary to notify the IRS, especially if the payer refuses to issue the form or continues to report incorrect data.

In most cases, the IRS doesn’t need to be involved unless the payer has issued a form with incorrect info that could lead to a mismatch on your return. Your CPA can guide you on whether filing a written explanation or attaching supporting documentation is necessary. 

At the end of the day, your tax responsibility doesn’t hinge on whether a form was sent. If you earned it, you report it. And if something looks off, don’t guess—loop in your CPA early so you can get ahead of it. 

The bottom line

Not getting a 1099-NEC might feel like a free pass—but it’s not. If you earned income as a contractor, it still needs to be reported—form or no form.  

If you’re not sure where to start, that’s where we come in. 

At DiMercurio Advisors, we help small business owners and contractors report income the right way—whether you got a 1099 or not. Schedule a call with our team today and let’s make sure everything’s in order, no matter what paperwork (or lack of it) comes your way.