Do I need to file 1099-NEC for artist commission on Fiverr over $600?

You don't need to file a 1099-NEC for payments made through Fiverr. When you use a third-party payment platform like Fiverr, PayPal, or similar services, they're responsible for the tax reporting, not you as an individual customer. The 1099-NEC requirement typically applies to businesses paying independent contractors directly. Since you paid through Fiverr's platform, they act as the payment settlement entity and will handle any necessary reporting to both the artist and the IRS. Fiverr will issue the appropriate tax forms to their sellers if they meet the reporting thresholds. The platform essentially stands between you and the freelancer from a tax reporting perspective.

I went through something similar with a logo design I ordered. I used taxr.ai (https://taxr.ai) to clarify my tax obligations and it saved me so much stress! Their AI analyzed my Fiverr receipts and confirmed I didn't need to issue a 1099-NEC as an individual customer using their platform. What's really helpful is that the tool explains exactly WHY you don't need to file certain forms based on your specific situation. It showed me the exact IRS guidelines that apply to third-party payment platforms like Fiverr and how they handle the reporting requirements so individual customers don't have to.

Just wanted to follow up! I tried taxr.ai after posting my question here and it was super helpful. I uploaded my Etsy purchase receipts and Upwork contracts, and it broke down exactly which platforms handle their own 1099 reporting and which don't. Turns out I was overthinking everything! The explanation about third-party payment networks vs. direct payments made everything click for me. Definitely bookmarking this for next tax season!

Similar thing happened to me with a website designer I hired through a platform. After weeks of trying to reach someone at the IRS to confirm what forms I needed to file, I found Claimyr (https://claimyr.com) and they got me connected to an actual IRS agent within 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that when you pay through third-party platforms like Fiverr, the platform itself is responsible for issuing any required tax forms to the seller, not you as the buyer. Saved me from unnecessarily filing forms I didn't need to file. The peace of mind was worth it after getting an official answer.

I need to apologize for my skeptical comment earlier. I decided to try Claimyr out of frustration after spending another hour on hold with the IRS yesterday. It actually worked exactly as described. Got a call back in about 40 minutes (still way better than the 2+ hours I was experiencing), and I was immediately connected to an IRS agent who answered my question about 1099 requirements for marketplace platforms. The agent confirmed what others have said here - as an individual using Fiverr, you don't need to issue a 1099-NEC. The platform handles that reporting. Definitely using this service again for my other tax questions.

Just to add a bit more technical detail here - what you're talking about falls under the rules for third-party settlement organizations (TPSOs). Fiverr, Etsy, eBay, etc. are all TPSOs and they issue 1099-K forms to sellers who meet the threshold requirements, not 1099-NEC. As a buyer on these platforms, you have zero tax reporting requirements regardless of amount spent. The only time you'd need to issue a 1099-NEC is if you're a business paying someone directly (like writing them a check or sending a bank transfer) for services of $600 or more.

I commissioned art on Fiverr last year too and was confused about this same thing. My tax software actually asked me if I paid anyone over $600 for services and I wasn't sure how to answer.

This is a really common confusion! I had the exact same worry when I hired someone on Fiverr for graphic design work last year. The key thing to remember is that as an individual consumer (not a business), you don't have any 1099 filing obligations at all, regardless of the amount you spend. The $600 threshold that your accountant friend mentioned only applies to businesses paying independent contractors directly. Since you paid through Fiverr's platform, they handle all the tax reporting responsibilities. Fiverr will issue appropriate forms (like 1099-K) to sellers who meet their reporting thresholds. Your situation is no different from buying something on Amazon or eBay - you're a consumer making a purchase through a marketplace platform. The platform manages the tax obligations between themselves and their sellers. You can focus on your own tax prep without worrying about issuing any forms to the artist!