Tax Tip- FORM 1099-K

November 11, 2023
November 11, 2023 bhamilton

Who Sends Form 1099-K

Payment card companies, payment apps and online marketplaces are required to file Form 1099-K with the IRS. They also must send a copy of the form to taxpayers by January 31.

Who Gets Form 1099-K

You should get Form 1099-K for these situations:

If You Received Any Payments With Payment Cards

This includes credit cards, debit cards and stored value cards (gift cards).

If You Received Payments Over $600 With a Payment App or Online Marketplace

This includes payments for a personal item you sold or for goods you sell, services you provide or property you rent through any:

  • Peer-to-peer payment platform or digital wallet
  • Online marketplace (sale or resale of clothing, furniture and other items)
  • Craft or maker marketplace
  • Auction site
  • Car sharing or ride-hailing platform
  • Real estate marketplace
  • Ticket exchange or resale site
  • Crowdfunding platform
  • Freelance marketplace

Gifts or reimbursement of personal expenses from friends and family should not be reported on Form 1099-K. They are not payments for goods or services.

Payment apps and online marketplaces are required to file a Form 1099-K if the gross payments to you for goods and services are over $600.

The $600 reporting threshold started with tax year 2023. There are no changes to what counts as income or how tax is calculated.

The reporting threshold for third party settlement organizations, including payment apps and online marketplaces, was lowered to $600 by the American Rescue Plan Act of 2021. Find more information on the change in reporting requirements.

If You Get a Form 1099-K in Error

You may get a Form 1099-K in error when the form:

  • Reports payments that were gifts or reimbursements from family or friends
  • Doesn’t belong to you or is a duplicate

If this happens:

  • Contact the issuer immediately – see FILER on the top left corner of Form 1099-K
  • Keep a copy of the original form and all correspondence with the issuer for your records.

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