Form 1099-K, Payment Card and Third-Party Network Transactions is an IRS form used to report credit/debit card transactions and third party network payments.
The 1099-K is not a new form, but reporting thresholds have changed and been delayed. For tax years prior to 2023, the threshold for third-party network transaction payments was more than $20,000 and more than 200 transactions.
The American Rescue Plan of 2021 changed third party payment processors reporting requirements to payments processed exceeding $600, which is down considerably from the original more than 200 transactions per year and exceeding an aggregate amount of $20,000 reporting requirement.
On December 23, 2022 the IRS announced a delay in the lower reporting thresholds for third-party settlement organizations for tax year 2022 (taxes filed in 2023) and again on November 21, 2023 for tax year 2023, so people who have payments processed through third party platforms like Venmo and PayPal may still only receive a 1099-K form reporting their processed payments if they exceed $20,000 and more than 200 transactions.
If you are a creator, influencer, rideshare driver, work a side gig or other self-employed business and you accept credit, debit, or prepaid cards you may receive Form 1099-K, reporting self-employment payments processed by the third party if you have aggregate payments exceeding $20,000 and more than 200 transactions.
If you are an online seller selling on platforms like Ebay, Airbnb, Etsy, and VRBO with sales at the aggregate of more than $20,000 and more than 200 transactions you could also receive a form 1099-K even if you do occasional sales.
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