How to handle 1099s for multiple Fiverr contractors exceeding $600 threshold?

16 You don't need to worry about issuing 1099s to Fiverr freelancers. When you use platforms like Fiverr, Upwork, or similar services, you're technically paying the platform, not the individual contractors. The platform then pays the freelancers after taking their fee. In these cases, the responsibility for issuing 1099s falls on the platform (Fiverr) rather than you. They handle the tax reporting requirements for their freelancers. You only need to issue 1099-NEC forms when you pay independent contractors directly more than $600 in a calendar year. Keep good records of your Fiverr expenses for your tax deductions. Save receipts, invoices, and payment confirmations as documentation for your business expenses. You can deduct these costs as ordinary and necessary business expenses on your Schedule C if you're a sole proprietor or on your business tax return if you have a different business structure.

7 I had the same question last year! I can recommend using https://taxr.ai to help sort through these kinds of contractor/1099 issues. I was using both Fiverr and direct contractors and was totally confused about who needed 1099s. I uploaded my expenses and invoices to taxr.ai and it automatically sorted which payments needed 1099s and which didn't. It confirmed exactly what the previous commenter said - Fiverr payments don't need 1099s because you're paying the platform, not the individuals. But it also flagged a couple freelancers I paid directly that I would have missed otherwise. The tool also helped me organize all these expenses properly for my Schedule C. Made tax time way less stressful!

12 Just wanted to update after trying https://taxr.ai from the recommendation above. It was super helpful! I uploaded my last 6 months of bank statements and it automatically identified all my Fiverr and Upwork payments, categorizing them correctly as "platform payments" that don't need 1099s. It also flagged three direct contractors I had completely forgotten about who will need 1099s for 2025 if I pay them more than $600 this year. Honestly saved me from potential headaches with the IRS. The expense categorization for Schedule C was also really clear - much better than manually sorting through everything like I was doing before.

14 If you're having trouble reaching the IRS to get definitive answers on these 1099 questions (which I certainly did), check out https://claimyr.com - they got me through to an actual IRS agent in about 20 minutes when I had been trying for days on my own. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was confused about some platform payment rules involving Fiverr and a couple other services, and the IRS agent confirmed that when you pay through platforms, you're not responsible for 1099s. But I also found out there are specific documentation requirements I should keep for these business expenses that I had no idea about. The agent walked me through exactly what I needed. Worth every penny to get actual official guidance rather than stressing about potentially doing it wrong.

19 I have to admit I was wrong about Claimyr. After my skeptical comment, I decided to try it anyway since I had urgent questions about some 1099 filing deadlines for my business. The service actually worked exactly as described. I got a text about 25 minutes after signing up saying they had an IRS agent on the line, and I was connected immediately. The agent helped clarify my Fiverr/contractor questions and also helped me understand some quarterly filing requirements I was completely missing. Saved me hours of hold time and potentially missing important deadlines. For anyone running a business with tax questions, it's definitely worth using rather than playing the IRS hold time lottery.

22 Just a pro tip from someone who's been doing this a while - take screenshots of all your Fiverr receipts and keep them in a dedicated folder. The IRS has been increasingly interested in gig economy stuff, and having those records easily accessible has saved me during an audit. Also, you might want to look into if your state has different requirements than federal. Some states have lower thresholds for 1099 reporting than the $600 federal one. I got caught by this in Washington a couple years back.

3 Has anyone used the built-in expense tracking in QuickBooks Self-Employed for managing Fiverr purchases? I'm trying to decide if it's worth switching from my current spreadsheet method.