How the One Big Beautiful Bill Affects Creators & 1099-K Reporting in 2025

How the One Big Beautiful Bill Affects Creators & 1099-K Reporting in 2025

Updated: July 15, 2025

Are you a creator on platforms like OnlyFans, YouTube, or Twitter tipping services? The One Big Beautiful Bill (OBBB) passed in 2025 brings important changes to how your third-party payment income is reported—especially on Form 1099‑K. Here's what you need to know:

📊 1099‑K Reporting Thresholds for Creators

  • 2025 threshold: $2,500+ in total payments via credit cards or platforms (like PayPal, Venmo, Patreon).
  • 2026+ threshold: Drops further to $600+

If you received over $2,500 on one or more platforms during 2025, expect a 1099‑K in January 2026.

💵 Taxable Income vs Non‑Taxable Gifts

1099‑K income must be reported as taxable income—but note, not all transactions are business revenue. ⁠Personal gifts or reimbursements aren’t taxable. Tagging helps separate personal vs business. Always check your 1099‑K, and correct it with the platform if needed.

🥤 Tips-on-Platform: Exclusion Misconception

Some creators hope the new “tip exclusion” in OBBB applies to their platform tips—but that only applies to W‑2 employees. As a self-employed creator, tips via OnlyFans, Twitch, or other platforms are still taxable. Learn more in our article Does the “Big Beautiful Bill” eliminate taxes on Social Security? and how tip tax works for you.

📝 How to Report Your 1099‑K

  • Hobby income: Use Schedule 1 (Form 1040) if you're not in business.
  • Business income: Report on Schedule C if you're a creator-business; don't forget ordinary & necessary expenses.

As a qualified business, you may also be eligible for the 20% QBI deduction, which was made permanent by OBBB.

🚗 Optimize Savings with Zoho Expense + Mileage

Keep track of platform fees, equipment, mileage, and more with Zoho Expense. It helps you:

  • Track your business mileage via GPS or odometer ZOHO Expense
  • Store receipts and fees easily ()
  • Generate audit‑ready reports with a swipe!

✅ Key Takeaways for Creators

  • 💰 2025 threshold is $2,500; your payments might trigger a 1099‑K.
  • ❤️ Tip income from platforms is taxable—no special exclusions unless W‑2.
  • 📊 Report correctly—Schedule C vs Schedule 1 based on your status.
  • 📥 Use Zoho Expense to track expenses, mileage, and prep for 2025 filing.

👀 Want to learn more? Check out our related creator‑focused articles:

📌 Disclaimer:
This article is not to be taken as tax, legal, financial or accounting advice. Rules & regulations change over time—consult your tax advisor for guidance.