What is a 1099-K? You May Get One!

By Michael Lodge on January 31, 2024


Michael Lodge - The Business Advisor - 424.542.7299 - www.lodge-co.com: In the United States, businesses and individuals who receive income through payment apps like Venmo and PayPal, or from e-commerce platforms such as eBay, Etsy, and Poshmark, are subject to reporting changes for Form 1099-K. Form 1099-K, also known as "Payment Card and Third Party Network Transactions," is used to report payments received through reportable payment card transactions and/or settlement of third-party payment network transactions. As of 2023, individuals could expect to receive Form 1099-K if they had more than 200 transactions worth an aggregate over $20,000. However, the IRS has announced a change for 2024, phasing in a $5,000 limit. This means that starting in 2024, individuals will only receive Form 1099-K if they exceed 200 transactions and $5,000 in total payments. These changes reflect the evolving landscape of digital payments and aim to streamline reporting requirements for taxpayers and payment processors.

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