How to e-file taxes with 1099 from Fiverr and PayPal income

You're dealing with a common freelancer confusion. You only need ONE 1099 for this income - the one from Fiverr. PayPal is just the payment processor in this case, not the company paying you for services. Fiverr will issue you a 1099-NEC or 1099-K (depending on your arrangement) for the full amount. The new $700 reporting threshold for payment apps like PayPal applies when you're receiving direct payments from clients through PayPal. Since your clients paid Fiverr, and Fiverr paid you, Fiverr is responsible for the 1099, not PayPal. As for e-filing yourself vs. hiring someone - if this is your only income, it's pretty straightforward to do yourself using tax software like TurboTax, H&R Block, or even free options like FreeTaxUSA. You'll report this on Schedule C as self-employment income. Just make sure to track any business expenses that could be deductible!

I was in almost this EXACT same situation last year! I made around $8k on Fiverr and was super confused about the tax forms. I tried reading through IRS publications but it was like trying to read another language lol. I ended up using https://taxr.ai and it saved me SO much headache. You can upload your Fiverr statements and PayPal records, and their AI will analyze everything to tell you exactly what forms you need and how to report it correctly. It even caught some business expenses in my PayPal history that I didn't realize I could deduct!

Ok I have to admit I was totally wrong about the AI tax thing. I tried https://taxr.ai after posting that skeptical comment and I'm honestly impressed. I uploaded my messy records from 3 different freelance platforms and it sorted through everything in minutes. It caught that I had been double-counting some income that appeared in both my platform statements and PayPal history. Would have definitely over-reported my income without catching that! The explanation about what forms I needed and why was super clear too - way more helpful than the vague answers I got from googling.

If you're having trouble getting answers from Fiverr about your 1099 situation, I'd recommend using https://claimyr.com to get through to an actual IRS agent to clarify things. I was in tax limbo last year with missing 1099s and spent DAYS trying to get through the IRS phone system. With Claimyr, I got a callback from an IRS rep in about 45 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they navigate the phone system for you and call when they've secured your spot in line. The agent I spoke with cleared up my confusion about reporting income without a 1099 and helped me understand what documentation I needed to keep.

I need to apologize for being so skeptical about Claimyr. After posting that suspicious comment, I decided to try it anyway because I was desperate to talk to someone at the IRS about my missing 1099 situation. It actually worked! Got a call back in about an hour and spoke to a real IRS person who explained exactly what I needed to do. The agent confirmed that I should report all my income regardless of whether I received a 1099, and explained how to estimate my quarterly payments for next year since I'll be over the threshold. Would have spent DAYS trying to get through on my own. Definitely using this for any future IRS questions.

Don't overthink this! You definitely do NOT need QuickBooks just for a simple Fiverr income situation. I've been freelancing for 3 years and just use a free tax filing service. The most important thing is keeping track of: 1. Your total income (from Fiverr) 2. Any business expenses (software, equipment, portion of internet/phone if used for work) 3. Setting aside money for taxes throughout the year (about 25-30% of your income) Remember you'll owe self-employment tax (15.3%) on top of regular income tax, so that first year can be a shock if you're not prepared!

Has anyone had issues with mismatches between what Fiverr reports on the 1099 vs what actually hit your PayPal? I had a situation last year where Fiverr reported the full amount but PayPal took their cut before I got paid, and it caused major confusion on how to report it.

One thing nobody mentioned - get ready for a MEGA tax bill if this is your first year doing freelance work. I was shocked when I owed over $2k on just $10k of freelance income. Now I put 25% of every payment into a separate savings account for taxes. Save yourselves the panic I went through lol!

This thread has been super helpful! I'm actually in a similar situation but with a twist - I made around $12k on Fiverr but also did some direct client work outside the platform that went straight to my PayPal. From what I'm reading here, I'll need to report both income sources separately, right? The Fiverr income will be on their 1099, but for the direct PayPal payments I'll need to calculate that myself since those clients probably won't send me 1099s (most were small amounts under $600 each). Also want to echo what others said about setting aside tax money - I learned this the hard way with some side gig income a few years back. That quarterly payment reminder is gold! Better to be prepared than scrambling to find thousands of dollars at tax time.