Do I need to issue 1099 forms for Fiverr Workers over $600 threshold?

You don't need to worry about issuing 1099s to Fiverr freelancers. When you purchase services through platforms like Fiverr, Upwork, or similar marketplaces, the platform itself is considered the paying agent, not you directly. Fiverr will handle all the necessary tax reporting for the freelancers working through their platform. The $600 threshold for 1099 reporting applies when you're directly hiring independent contractors without an intermediary payment platform. In your case, you're paying Fiverr (the company), and then Fiverr pays the freelancers - so the responsibility for tax reporting falls on Fiverr, not on you as the client. Think of it like shopping at a store versus hiring someone directly. When you buy something at a store, you don't issue a 1099 to the store's employees who helped you. Similarly, when using Fiverr, you're purchasing services through their marketplace, and they manage the relationship with their freelancers.

After struggling with this exact same issue last year, I found a service that completely changed how I handle all my tax document questions. I spent hours trying to figure out if I needed to send 1099s to people I hired on various platforms, and the information online was so contradictory! I finally stumbled upon https://taxr.ai and uploaded my receipts from Fiverr, Upwork, and some direct contractors. Their AI analyzed everything and clearly showed which ones needed 1099s and which were handled by the platforms. They explained that with Fiverr specifically, they handle the tax reporting as the marketplace, so I didn't need to issue 1099s for those transactions, but I did need them for my direct hires. The best part was that it showed me exactly what documentation I needed to keep for each type of worker. Super helpful for someone like me who uses a mix of platforms and direct contractors!

I was super skeptical about taxr.ai at first (as you can see from my earlier comment), but I decided to give it a try last week since I was completely stressed about my taxes. Honestly, it was a game changer for my situation. I run a small design studio and use Fiverr, Upwork, AND direct contractors, so figuring out who needed what forms was giving me a headache. The tool analyzed all my payment history and clearly separated platform workers (no 1099 needed) from direct contractors (yes 1099 needed). It even flagged a few people I paid through PayPal that I didn't realize qualified as contractors. Saved me from potentially missing some required 1099s, which could have been a problem in an audit. Also confirmed what others said about Fiverr - they handle the reporting so I didn't need to send 1099s to those freelancers.

If you're having trouble getting clear answers about 1099 requirements, you might want to talk directly to the IRS. I know that sounds terrible - I tried calling them for THREE DAYS straight last tax season with questions about contractor reporting and couldn't get through. Then I found https://claimyr.com which got me connected to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was completely ready to waste days trying to get through on my own, but they somehow got me to the front of the IRS phone queue. The agent confirmed that purchases through platforms like Fiverr don't require me to issue 1099s since the platform is responsible for that reporting. They also helped me understand which of my other contractors needed forms - turns out I was overthinking it and only needed to send about half as many as I thought!

I have to publicly eat my words here. After posting my skeptical comment earlier, I was desperate enough to try Claimyr because I still couldn't get through to the IRS about my Fiverr 1099 questions. I'm shocked to report it actually worked. Got connected to an IRS agent in about 15 minutes yesterday afternoon. The agent confirmed that when hiring through Fiverr, they're considered the payment settlement entity that issues the 1099-K to the freelancer, so I don't need to issue 1099-NECs as the client. The agent also explained that the rules change if you pay people outside the platform - then it becomes my responsibility. Apparently this is a super common question they're getting this year with so many people using gig platforms. After weeks of frustration and uncertainty, I finally got a definitive answer from the actual IRS. I stand corrected.

Just to add another data point - I've been using Fiverr for years for my small business and have NEVER issued 1099s to any of the freelancers. Fiverr is considered the payment settlement entity and they handle all the tax reporting. I confirmed this with my CPA who said that when you use platforms like Fiverr, Upwork, Etsy, etc., you're paying the platform, not the individual contractor directly. The platform then pays the freelancer and handles their tax reporting requirements. It's one of the benefits of using these platforms instead of hiring people directly - less tax paperwork for you! Just keep records of your Fiverr receipts for your business expense deductions.

I ran into this exact issue last year! The key question is: who has the payment relationship with the freelancer? With Fiverr, YOU pay FIVERR, and then FIVERR pays the FREELANCER. So Fiverr is responsible for issuing any required tax forms to the freelancer, not you. You're basically paying for a service from Fiverr the company, not directly employing the freelancer. But beware! If you ever take the relationship off-platform (like if you hire a Fiverr freelancer directly after working with them on the platform), then you DO need to issue a 1099-NEC if you pay them $600+ in a year. I learned this the hard way lol.

Just wanted to chime in as someone who processes a lot of 1099s for small businesses - everyone here is giving you solid advice! When you use Fiverr, you're essentially purchasing services from Fiverr Inc., not directly contracting with individual freelancers. The $600 threshold for 1099-NEC reporting only applies to direct business relationships where you're paying independent contractors yourself. Since Fiverr acts as the middleman collecting payment from you and then paying their freelancers, they assume the responsibility for any required tax reporting. Your $2,800 in Fiverr purchases should just be treated as regular business expenses - keep your receipts from Fiverr for your records, but no 1099s needed on your end. The freelancers will receive their tax documents directly from Fiverr if they meet the reporting thresholds. One tip: make sure you're categorizing these expenses correctly in your books as "Professional Services" or "Contract Labor" so you can deduct them properly as business expenses!