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Glossary termTaxes for TLC drivers

Form 1099-NEC: Meaning for NYC TLC Drivers

Form 1099-NEC reports what a business paid you as a non-employee. Its threshold rose from $600 to $2,000 for 2026 payments, and it has new cash-tip boxes.

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  • 4 official sources

Definition

Form 1099-NEC

IRS form a business sends to report what it paid you for services as a non-employee; $2,000 threshold for 2026 payments.

On this page (4)
  1. The figures (as of 2026-10-12)
  2. Where it shows up for drivers
  3. FAQ
  4. Sources

Form 1099-NEC ("Nonemployee Compensation") is the IRS form a business files for each person it paid for services performed by someone who is not its employee, once the payments reach the reporting threshold. You get a copy, and the IRS gets one too (IRS instructions). For a TLC driver, it is one of the forms that can show self-employment income. Whatever it reports goes on your Schedule C, and amounts in box 1a are generally subject to self-employment tax.

The figures (as of 2026-10-12)

  1. Threshold: $2,000 for 2026 payments

    "For tax years beginning after 2025, the minimum threshold … increased to $2,000 and may be adjusted for inflation beginning in calendar year 2027." (Instructions, Rev. Dec. 2026)

  2. Threshold: $600 for 2025 payments

    The April 2025 instructions required the form for at least $600 in nonemployee services.

  3. Due date: January 31

    Payers must furnish your copy and file with the IRS by January 31. A due date on a Saturday, Sunday or legal holiday moves to the next business day.

  4. New tip boxes

    Box 1b: cash tips included in box 1a ("tips paid in cash or charged by customers"). Box 1c: Treasury Tipped Occupation Code(s).

Sources: Instructions, Rev. December 2026; Instructions, Rev. April 2025.

Where it shows up for drivers

  • Not for app ride payments. Payments made by card and "third-party network transactions" are reported on Form 1099-K "and are not subject to reporting on Form 1099-MISC or Form 1099-NEC." App ride pay is covered by the Form 1099-K rule. A company may still use a 1099-NEC or 1099-MISC for other payments to you. Which payments go on which form is the company's call, so keep everything you receive.
  • Cash tips. Because the 2026 form has a cash-tip box and an occupation code, a 1099-NEC can be one of the statements used for the federal tips deduction. See no tax on tips for TLC drivers.
  • On your return. The Schedule C instructions say line 1 must include amounts properly shown on your Forms 1099-NEC. If box 1 totals are more than what you report on line 1, attach a statement explaining the difference (Schedule C instructions).
  • If NYS asks. NYS's driver checklist asks app drivers for all Forms 1099-K and 1099-MISC, and limousine and for-hire drivers for "all Forms 1099-MISC or all of your maintained trip sheets" (NYS Tax). Keep any 1099-NEC with them.

Which forms an app driver should expect: will I get a 1099-K or 1099-NEC from Uber or Lyft?. Cab drivers: do taxi drivers get a 1099?. More on the taxes hub.

Frequently asked questions

What is Form 1099-NEC?

The IRS form a business uses to report nonemployee compensation: what it paid you for services when you are not its employee. You get a copy and so does the IRS.

What is the 1099-NEC threshold for 2026?

$2,000. For tax years beginning after 2025 the threshold increased to $2,000 and may be adjusted for inflation starting in 2027. For 2025 payments it was $600.

What are the new tip boxes?

The 2026 form adds box 1b for cash tips included in box 1a (tips paid in cash or charged by customers) and box 1c for the Treasury Tipped Occupation Code.

Sources

Last reviewed against the official sources on .

  1. IRS: Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026) irs.gov
  2. IRS: Instructions for Forms 1099-MISC and 1099-NEC (Rev. April 2025) irs.gov
  3. IRS: 2025 Instructions for Schedule C (Form 1040) irs.gov
  4. NYS Tax: Checklist for taxi, limousine, and self-employed drivers tax.ny.gov

Spotted something out of date? Tell us and we'll check it against the official source.

TLC Help is not a law firm and is not affiliated with the NYC Taxi & Limousine Commission or OATH. Explanations on this site are general information, not legal advice. Legal representation is provided by independent attorneys and OATH-registered representatives in our network.

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