# 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. <br>

Form 1099-K is an information return that payment apps and online marketplaces provide when you use them for selling
&#x20;goods or providing a service. You can use the information on the Form 1099-K with your other tax records to determine your
&#x20;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.&#x20;

### What does a 1099-K look like?

<figure><img src="https://218882842-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FafK4JwjC5wqIJuv6RlYF%2Fuploads%2FsMv0dw4XcrlQ3FN2Rxaf%2Fimage.png?alt=media&#x26;token=75aae4c1-f117-4dfc-9a23-f07951a1adf5" alt=""><figcaption><p>Blank 1099-K</p></figcaption></figure>

<figure><img src="https://218882842-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FafK4JwjC5wqIJuv6RlYF%2Fuploads%2FmFUHtnSCeeJ1CeSBgSBv%2FScreenshot%202024-12-17%20at%203.07.17%E2%80%AFPM.png?alt=media&#x26;token=ab9e0679-48cc-4fd7-881a-a820dfcfaf74" alt=""><figcaption><p>Sample 1099-K from Jupico</p></figcaption></figure>

### Additional Resources

For more detailed information, refer to the IRS resources:

* [Understanding Your Form 1099-K](https://www.irs.gov/businesses/understanding-your-form-1099-k)
* [Form 1099-K FAQs](https://www.irs.gov/newsroom/form-1099-k-faqs)

*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.](https://www.irs.gov/newsroom/form-1099-k-frequently-asked-questions)


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