Form 1099-K is a report of payments you got for goods or services during the year from:
- Credit, debit or stored value cards such as gift cards (payment cards)
- Payment apps or online marketplaces, also called third party settlement organizations or TPSOs
These organizations are required to fill out Form 1099K and send copies to the IRS and to you.
Payments you got from family and friends should not be reported on Form 1099-K.
Use Form 1099-K with other records to help you figure and report your taxable income when you file your tax return.
Did you get a Form 1099-K? Find what to do with it.
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1.) Who sends Form 1099-K
Payment card companies, payment apps and online marketplaces are required to fill out Form 1099-K and send it to the IRS each year. They must also send a copy to you by January 31.
2.) Who gets Form 1099-K
You should get Form 1099-K for these situations:
If you take direct payment by credit or bank card for selling goods or providing services
If your customers or clients pay you directly by credit, debit or gift card, you’ll get a Form 1099-K from your payment processor or payment settlement entity, no matter how many payments you got or how much they were for.
Find what to do with Form 1099-K.
If you used a payment app or online marketplace and received over $20,000 from over 200 transactions
A payment app or online marketplace is required to send you a Form 1099-K if the payments you received for goods or services total over $20,000 from over 200 transactions. However, they can send you a Form 1099-K with lower amounts. Whether or not you receive a Form 1099-K, you must still report any income on your tax return.
This includes payments for any:
- Goods you sell, including personal items such as clothing or furniture
- Services you provide
- Property you rent
The payments can be made through any:
- Payment app
- Online community marketplace
- Craft or maker marketplace
- Auction site
- Car sharing or ride-hailing platform
- Ticket exchange or resale site
- Crowdfunding platform
- Freelance marketplace
If you accept payments on different platforms, you could get more than one Form 1099-K.
Personal payments from family and friends should not be reported on Form 1099-K because they are not payments for goods or services.
Find what to do with Form 1099-K.
3.) Reporting threshold
For tax year 2023, payment apps and online marketplaces are required to file a 1099-K for personal or business accounts that receive over $20,000 in payments from over 200 transactions for goods or services.
There are no changes to what counts as income or how tax is calculated.
The reporting threshold for third party settlement organizations, which include payment apps and online marketplaces, was changed to $600 by the American Rescue Plan Act of 2021. The IRS announced a delay in implementing this change for tax year 2023, which covers tax returns generally filed in early 2024.
Although the Form 1099-K reporting threshold for 2023 is $20,000, companies could still send the form for totals over $600.
No matter the amount, if you receive payments for selling goods or services or renting property you must report your income.
4.) Personal payments from family and friends
Money you receive from friends and family as a gift or repayment for a personal expense should not be reported on a Form 1099-K. These payments aren’t taxable income.
For example: Sharing the cost of a car ride or meal, receiving money for birthday or holiday gifts or getting repaid by a roommate for rent or a household bill.
Be sure to note these types of payments as non-business in the payment apps when possible.
If you receive a Form 1099-K when you shouldn’t have, take these steps.