Support CenterWhat is a form 1099-K and who receives one? - What is a form 1099-K and who receives one?
🔍 What is a form 1099-K and who receives one?
This guide explains what a Form 1099-K is and who sends and receives it.
📚 What This Guide Covers
- What a 1099-K is - what it reports
- Who sends Form 1099-K - payment card companies, apps, and marketplaces
- Who gets Form 1099-K - when taxpayers receive it
- What shouldn’t be reported - gifts and personal expense reimbursements
🔍 What is a 1099-K?
Form 1099-K is a report of payments taxpayers got during the year from:
- Credit, debit or stored value cards such as gift cards (payment cards)
- Payment apps or online marketplaces (third-party payment networks)
📤 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 byJanuary 31.
Third-party payment networks are required to file Form 1099-K with the IRS and provide a copy to taxpayers when the gross payment amount ismore than $600. Form 1099-K should not report gifts or reimbursement of personal expenses taxpayers received from friends and family.
👤 Who Gets Form 1099-K
Taxpayers receive Form 1099-K for these situations:
Step 1: Received Any Payments With Payment Cards
This includes credit cards, debit cards and stored value cards (gift cards).
Step 2: 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 (Cash App, Venmo, etc )
- 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
📝 What Shouldn't Be Reported on Form 1099-K
❌ What to Avoid Reporting
Money received from friends and family as a gift or reimbursement of a personal expense should not be reported on a Form 1099-K. For example: Sharing the cost of a car ride or meal, receiving money for birthday or holiday gifts or getting repaid by a roommate for a household bill. These payments aren't taxable income.
Be sure to note these types of payments as non-business when possible, in the payment apps.
📞 Still Need Help?
If you are having trouble, contact our support team:
Phone: 1-800-516-9442
Tags: federal,form