Support CenterWhat is a form 1099-K and who receives one? - What is a form 1099-K and who receives one?
What is a 1099K?
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:
Received Any Payments With Payment Cards
This includes credit cards, debit cards and stored value cards (gift cards).
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
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.
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