Income
6 min read
1099-NEC, 1099-K and what to do when they don't match
Why your forms rarely add up to your income, and why that is usually fine.
Two forms, two senders
A client who pays you directly may send a 1099-NEC. A payment platform such as Stripe or PayPal sends a 1099-K once you pass its federal reporting threshold. The same payment should never be on both, but sometimes it is.
When they don't match
Report the income you actually received, not the total of your forms. If a 1099-K includes refunds, fees or payments that were also on a 1099-NEC, show the full form amount and then adjust it, with a short note, so the IRS can match its records to yours.
How Ashford handles it
Every payment in Ashford is tied to a client and the form you should expect. When forms arrive in January, you upload a photo or they import from the platform, and Ashford flags any gap larger than $50.
Connect the accounts you get paid through and Ashford shows your fourth-quarter estimate in about five minutes. Bookkeeping and estimates are free; filing starts at $24 a month.