Source: The Verge
Substack's decision to file 1099s for creators earning over $600 annually has accelerated migration to competitors like Ghost and Beehiiv, who either don't report to the IRS or handle it differently. The shift exposes how platform compliance choices reshape creator economics and loyalty. Substack built trust by positioning itself as creator-friendly, but the 1099 requirement—which treats writers as contractors—has become a liability, especially for long-tail creators who made the platform culturally relevant but want to avoid tax complexity.