What is a 1099k?

Introduction

Form 1099-K, Payment Card and Third Party Network Transactions, is an IRS information return used to report payment transactions received through payment card processors and third-party settlement organizations (TPSOs). This form assists in ensuring that income from goods and services is accurately reported for tax purposes.

Who Receives a 1099-K?

For the 2025 tax year, the One, Big, Beautiful Bill (OBBB) retroactively reinstated the reporting threshold in effect prior to the passage of the American Rescue Plan Act of 2021 (ARPA). Third-party settlement organization (TPSO)(payment apps and online marketplaces) is only required to file a Form 1099-K if a payee meets both of the following criteria in a calendar year:

  • Gross payments exceed $20,000

  • There are more than 200 transactions

Why Did I Receive a 1099-K?

You should receive a Form 1099-K if you sold a good or provided a service, you were paid through a payment app or online marketplace, and your gross payments and transactions are in excess of the reporting threshold, or you accepted a payment from a payment card for any amount. You may have a tax obligation if you had a gain on the sale of goods or received payment for services you provided.

Form 1099-K is an information return that payment apps and online marketplaces provide when you use them for selling goods or providing a service. You can use the information on the Form 1099-K with your other tax records to determine your correct tax owed.

What Should I Do with My 1099-K?

Upon receiving your Form 1099-K:

  1. Review the Form: Ensure all information is accurate, including your taxpayer information and the gross payment amounts.

  2. Reconcile with Your Records: Compare the amounts reported with your own records to confirm consistency.

  3. Report Income Accurately: Use the information from Form 1099-K, along with your records, to report your income on your tax return. Remember, all income is taxable unless specifically excluded by law, regardless of whether you receive a Form 1099-K.

What does a 1099-K look like?

Blank 1099-K
Sample 1099-K from Jupico

Additional Resources

For more detailed information, refer to the IRS resources:

This page is for informational purposes only and should not be considered tax advice. Consult a tax professional for advice related to your specific circumstances.

For more information please reference this IRS FAQ.

PreviousHow do I update my account details?NextAccess Your 1099-K via Tax1099

Last updated

Was this helpful?