Fiverr Community Forum

ATTENTION USA SELLERS: 1099s will be issued by the end of the month if you made over $20,000

If you decide to Submit a Request maybe post the answer here.

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I will although I’m not sure CS would have that answer but I sent a request.

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You may want to take a look at the link I posted in my first post. If fiverr sends a 1099 to the US tax authorities they will give us a copy to file with our taxes.

edit: apparently fiverr does not send us a 1099. It’s confusing because they said they were sending one out to the IRS for all sellers and I thought they had to send a copy to us but maybe not.

  • Form 1099 is used to report certain types of non-employment income to the IRS, and there are many different types.
  • The IRS matches 1099s with your tax return; if you fail to report one, it will pursue you for taxes owed.
  • The deadline to mail 1099s to taxpayers is Jan. 31.
  • You are responsible for paying the taxes you owe even if you don’t get the form from a payer, so make sure to include those earnings in your tax return.
  • If you receive an incorrect 1099 form and the payer has already sent it the IRS, ask them to send in a corrected form.

I got a response from CS:

Fiverr does not issue any 1099 forms directly to its sellers. Fiverr uses two payment processing companies to pay its sellers: PayPal and Payoneer. US individual sellers should receive their 1099-K form directly from PayPal or Payoneer, respectively, for withdrawals that exceed $20,000 and more than 200 transactions per year.

This leaves a big gap because anyone who does not have withdrawals that exceed $20,000, or more than 200 transactions, would not be getting a 1099, from anyone.

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So the IRS will get a 1099 from fiverr and a 1099 from Paypal.

But we will only get one from Paypal. (If we have over 200 withdrawals etc.)

Something doesn’t make sense. I will consult my accountant.

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New update from CS about your 1099s:

Hi again,

I’m back with an update.

The 1099 form will be issued directly from our Finance department to you as a user by the end of this month.

This is only if you earned over $20,000.

So this raises a question I have:

We get a 1099 from Paypal and a 1099 from fiverr but this is for the same income.
But to the IRS it looks like we have two separate incomes.

I would think that it would be easy enough to prove to the IRS if you were to be audited how Fiverr income is moved to your PayPal, and should not be counted on the PayPal 1099, even if it is. Pain the butt if they do that, but, not something that could not be explained, if need be. If you have an accountant, they should be the one explaining to the IRS if you do get audited.

In my experience, having read on different platforms online for almost 25 years, those companies tend to wait til the 11th hour to send out the 1099’s and we get them either end of January or beginning of February. This should not hold you up if you want to at least have a rough draft of what you earned and what you may owe. All you need to do is take what you earned in 2020, add that to your other earned income and then begin to weep if you do owe taxes. Most times, IC’s will owe tax if they do not have a 9 to 5 type job that is paying into the tax base already. Also, IC’s are supposed to be filing quarterly tax returns and paying estimated taxes. Most do not do this and this is also why many who have a decent income freelancing will have a huge tax bill in April - what happens is, they penalize you for not filing quarterly!

GG

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Hi GG, hoping to not get audited haha. They would probably send a letter asking for lots of extra money.

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Yeah, that is what I don’t get. Two separate 1099K forms for the same income. I’m hoping the IRS will understand that PayPal is a payment processor and not an employer.

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My accountant has been doing this for 40 years and has never seen this happen before, where we have two 1099s for the same income. I expect to have a lot of explaining to do if I don’t want double the taxes. Plus penalties.

She told me to call and write letters to Paypal and also Fiverr and ask why I got 1099s from each one. I have a bad feeling about this. I can imagine going to tax court actually over it. Time to look for a tax lawyer.

We need fiver to give us a letter which states all our payments from fiverr went to Paypal. Otherwise we are in for problems.

Why can we only get a 1099 if we make over 20k? What if we make less but we still want to file?