For 2024, you will receive a Form 1099-NEC for the gross amount paid to you by TikTok. A 1099-NEC form is issued to those who are paid more than $600. When you file your taxes for 2024 in early 2025, you will need to report the amount you earned as reported on your 1099-NEC. Any processing fees paid to PayPal can be expensed as a deduction on your Schedule C as a reduction to the income reported on your 1099-NEC.
Since your payment is coming from PayPal, and if the amount remains at the amount you have mentioned above, you may not receive a 1099-K form. The threshold for 2024 is $5,000 but is slated to be reduced to annual payments over $600 in 2025. Make sure to report the overall income on your return and maintain accurate records should the IRS request support in the future. If you have payments reported on a 1099-NEC and the same payments are also reported on a 1099-K form, you only need to enter the amounts once. Essentially, you don't want to report the income twice if it's reflected on both forms as this would overstate your income.
Here are a few links to help guide you as well when it comes to tax filing season.
How do I report income from self-employment?
Reporting Self-Employment Business Income and Deductions
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
