1099 tax filing for gig workers — done for you

Why 1099 taxes are a nightmare — and not your fault

A W-2 employee has taxes withheld from every paycheck, gets one form in January, and is essentially done. A gig worker or self-employed person gets the exact opposite of that deal:

• Nothing is withheld. Every dollar lands gross. The IRS still wants its share, and it wants it four times a year, not once.
• The forms multiply. A 1099-NEC from this client, a 1099-K from that platform, another 1099-K from the card processor — and you are expected to reconcile them onto a Schedule C without double-counting.
• The thresholds changed. The 1099-K reporting threshold has dropped for 2026, so far more gig workers now receive one even for modest side income. More forms, more confusion.
• The deductions are invisible. The single biggest lever on a 1099 bill — business deductions — is scattered across hundreds of transactions nobody is categorizing.

The result is the classic gig-worker tax story: a four-figure April surprise, an underpayment penalty on top, and the gnawing sense you overpaid because you missed deductions. Kronos was built to end that story.

What Kronos actually does at tax time

• Files your 1099-K and 1099-NEC (Black plan). The forms that pile up from every client and platform get filed for you instead of dumped on you in April.
• AI Accountant finds your deductions. It scans your transactions and surfaces deductible business expenses — software subscriptions, equipment, supplies, mileage at the 2026 IRS rate ($0.67/mile), and a portion of your phone and internet. Each one lowers what you owe.
• Auto tax set-aside. Every detected income deposit moves a configurable percentage (default 22%) into a separate Tax bucket, so the bill is already funded when it's due. It's still your money — Kronos never touches it.
• Quarterly reminders. Kronos tracks the IRS estimated-tax calendar (April 15, June 15, September 15, January 15) and reminds you before each one with the amount to pay. More on quarterly taxes →
• Schedule C draft. A categorized draft with expenses, mileage total, and gross income per platform — so your filing (or your accountant's) takes minutes instead of an afternoon.

1099-K vs 1099-NEC — the part that trips people up

You can receive both forms in the same year for overlapping income, and that overlap is where most gig-worker mistakes happen. Here is the plain-English version:

Form	What it reports	Who sends it	Common Kronos user
1099-NEC	Nonemployee compensation paid directly to you	Clients, some platforms paying you directly	Freelancers, contractors, consultants
1099-K	Payments processed through a platform or card processor	Uber, DoorDash, Etsy, Stripe, PayPal, card networks	Gig drivers, sellers, creators

The risk: your 1099-K and a client's 1099-NEC can cover the same payment, and if you report both at full value you overpay. Kronos reconciles your actual deposit history against the forms so the numbers match reality, not the paperwork.

The math: what missed deductions cost

Take a full-time gig driver grossing $60,000 who drives 30,000 business miles a year:

• Mileage alone: 30,000 mi × $0.67 = $20,100 in deductible mileage. At a ~22% effective rate, that's roughly $4,400 in tax — routinely missed without a tracker.
• Other business expenses (phone, app subscriptions, supplies, equipment) commonly add another $1,000–2,000 in deductions the AI Accountant surfaces.
• Penalty avoided: funding estimates from the auto set-aside bucket avoids the underpayment penalty that hits gig workers who skip quarterlies.

For most full-time 1099 workers, getting the filing and deductions right is worth several thousand dollars a year. That is the entire pitch.

Common questions

Does the 1099 filing cost extra?

1099-K / 1099-NEC filing is part of the Kronos Black plan. Quarterly reminders, the auto tax set-aside bucket, and the AI Accountant deduction finder are available more broadly. See pricing for current plan details.

Will this replace TurboTax or my accountant?

For a straightforward 1099 or single-member-LLC return, Kronos handles the core forms, estimates, and deductions. For a complex return, keep your CPA — Kronos hands them a clean, categorized Schedule C draft instead of a shoebox, which usually lowers their bill too.

I drive for several apps — does it combine them?

Yes. Multi-platform earnings sync pulls Uber, DoorDash, Lyft, Instacart, GrubHub, Amazon Flex, Shipt, and Spark into one income view, and the mileage logger separates business from personal trips. See the self-employed account →

What if I made under $600 on a platform?

You still likely owe tax. The $600 figure is a platform reporting threshold, not a tax-free threshold — if your net self-employment earnings hit $400, you must file. Kronos tracks all detected income so nothing is forgotten.

Can I try the tax estimate before filing?

Yes — the free gig tax estimator gives you a quick read on what you'll owe and what to set aside.

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