2026 tax year · gig & creator income
How much to set aside for taxes on gig and creator income
Platforms don't withhold tax from contractors, and after the 2026 rule changes many of them won't even send a form. Pick your platform for how reporting works, the deductions that matter, and a worked example run through the same engine as the Fern app.
| Platform | Type | Forms | Example set-aside |
|---|---|---|---|
| DoorDash | Delivery | 1099-NEC | 10% |
| Instacart | Delivery | 1099-NEC | 14% |
| Amazon Flex | Delivery | 1099-NEC | 11% |
| Uber | Rideshare | 1099-K, 1099-NEC | 12% |
| Lyft | Rideshare | 1099-K, 1099-NEC | 13% |
| Etsy | Marketplace sellers | 1099-K | 15% |
| Upwork | Freelance marketplaces | 1099-K | 23% |
| Fiverr | Freelance marketplaces | 1099-K | 17% |
| YouTube | Creators | 1099-MISC, 1099-NEC | 22% |
| Twitch | Creators | 1099-MISC, 1099-NEC | 17% |
What changed for 2026
- Form 1099-K is back to the old threshold: payment platforms report you only when you have more than $20,000 in payments and more than 200 transactions (some states set lower thresholds).
- Forms 1099-NEC and 1099-MISC now start at $2,000 for payments made in 2026, up from $600. Royalties still report from $10.
- Mileage is 72.5¢ a mile for January–June 2026 and 76¢ from July 1.
- Tips earned by delivery and rideshare workers can be deducted from income tax (up to $25,000) for 2025–2028, but still owe self-employment tax.
Fewer forms doesn't mean less tax. Next federal estimated payment: January 15, 2027. Or find your state.
Frequently asked questions
What percentage of 1099 income should I set aside for taxes?
For a single filer with $25,000 to $150,000 of profit, Fern's engine puts it between 16% and 34% of income, depending on income and state. Self-employment tax alone is about 14% of net profit (15.3% on 92.35% of it) before federal and state income tax. The worked examples on these pages land between 10% and 23%.
Do I owe taxes if I didn't get a 1099?
Yes. The 1099 thresholds only decide whether a platform files a form. All self-employment income is taxable, and self-employment tax applies once your net earnings reach $400.
What's the 1099-K threshold for 2026?
More than $20,000 in payments and more than 200 transactions from a single platform. The One, Big, Beautiful Bill Act restored that threshold retroactively in July 2025, replacing the planned drop to $600. Some states require forms at lower amounts.
Fern does this math for you, every time you get paid
No spreadsheet, no monthly math. Confirm a deposit and Fern tracks what to set aside for taxes — and shows you what's safe to spend. Your money stays in your own bank account.
Free on iPhone · Pro from $12.99/mo
Not tax advice. Fern provides estimates for planning a savings target; it doesn't file returns or replace a tax professional. Figures use 2026 federal brackets and standard deduction (IRS Rev. Proc. 2025-32 as amended by OBBBA), 2026 self-employment tax with the §199A deduction, and 2026 state rates (Tax Foundation). Examples are hypothetical. Platform names are trademarks of their owners; Fern isn't affiliated with them.