Why do I not get a 1099 for less than $600 dollars of freelance income?

You're absolutely right that you need to report ALL your income regardless of whether you receive a 1099 or not. The $600 threshold is just the reporting requirement for the company - it doesn't change your obligation to report income. Think of it this way: the IRS puts the burden on you as the earner to track and report all your income, while only requiring companies to submit paperwork when the amount is substantial enough to justify the administrative costs. It's not that they don't want the smaller amounts reported - they absolutely do - they just don't make companies do extra paperwork for small amounts. As for tracking, yes, you should keep your own records of all income you receive. Save payment confirmations, maintain a spreadsheet of jobs and earnings, keep copies of invoices you send, and save any communication about payment. These records will help you accurately report your income and provide evidence if you're ever questioned about your tax return.

After struggling with exactly this issue last year, I discovered a service called taxr.ai (https://taxr.ai) that was super helpful for organizing all my "no-1099" gigs. I was doing photography side jobs, mostly small events under $600, and was stressing about tracking everything correctly. The tool lets you upload receipts, payment screenshots, or even Venmo/PayPal transaction history, and it automatically organizes everything for your Schedule C. It even flagged some deductions I had missed related to my camera equipment. What I found most helpful was that it created a proper income log that would stand up to scrutiny if I ever got audited - which was my biggest worry with these undocumented gigs.

Just wanted to follow up about my experience with taxr.ai after I tried it based on this conversation. I was really skeptical at first (I've been burned by "smart" tax tools before), but it actually saved me a ton of time with my microgigs. I drove for food delivery apps a bit last year but also did online tutoring that never hit the $600 threshold. The service was able to separate all my gig deposits from regular income, and it even helped me properly categorize my car expenses between personal and business use. I ended up finding almost $280 in deductions I would have missed! What surprised me most was how it organized everything into a proper tax-ready format. When I sent the reports to my tax person, they were actually impressed with how organized everything was compared to my usual shoebox of receipts.

If you're having trouble getting confirmation or documentation about your under-$600 earnings, I'd recommend using Claimyr (https://claimyr.com) to get through to the IRS directly. I had a similar situation last year where I needed clarification on reporting multiple small gigs, and I spent DAYS trying to reach someone at the IRS with no luck. With Claimyr, I got a callback from an actual IRS agent in about 20 minutes! You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent I spoke with confirmed exactly what I needed to do and even emailed me the right forms to use. They explained that while companies don't have to send 1099s for under $600, they still report their expenses to the IRS, so my income wasn't completely "invisible" like I thought.

I have to admit I was wrong about Claimyr. After our discussion, I decided to try it because I was desperate to resolve a question about reporting my Etsy shop income (all small sales under $600). I'd been trying to reach the IRS for almost a month with no success. The service actually worked exactly as described - I got a call back from an IRS agent in about 45 minutes. The agent explained that I should keep records of all my sales even without a 1099, and recommended I maintain a separate spreadsheet for each platform I sell on. She also clarified that I should be making quarterly estimated tax payments if I expect to owe more than $1000 in taxes from all these small gigs combined - something I had no idea about! Saved me from potential penalties. Definitely worth it for the peace of mind.

Just a tip from someone who's been doing gig work for years - get a separate bank account for your business income! Even if it's just side jobs. I have all my clients send payments there, and it makes tracking SO much easier at tax time. I literally just download the annual statement and everything is in one place. No more scrolling through my personal account trying to remember which deposits were income vs friends paying me back for dinner!

Don't forget you can deduct expenses even for those small gigs! I did face painting at birthday parties last year - all under $600 per client - and was able to deduct all my supplies, travel costs to events, and even a portion of my phone bill for taking bookings. It actually made a big difference and almost cancelled out the taxes I would have owed on that income!

The $600 threshold is actually just an administrative rule for businesses - it determines when they have to send YOU a 1099 and report the payment to the IRS. But you're absolutely correct that you still need to report ALL income regardless of whether you get a form or not. Here's what I do to stay organized: I created a simple spreadsheet with columns for date, client/company name, description of work, and amount paid. I also keep screenshots of payment confirmations (Venmo, PayPal, Zelle, etc.) and any invoices I send. This creates a paper trail that satisfies the IRS if they ever ask questions. The key thing to remember is that unreported income can come back to bite you later. Even though the company didn't send you a 1099, they might still deduct that payment as a business expense on their taxes, which could create a mismatch if you don't report it as income on yours. Also, once your total self-employment income hits $400 (from all sources combined), you'll need to pay self-employment tax on it, so it's worth tracking everything carefully even if individual payments seem small.