Form 1099-K: Threshold, Boxes and What to Do With It
A payment app or online marketplace (a third party settlement organization) must report on Form 1099-K only if the gross amount of reportable payment transactions to a payee exceeds $20,000 and the number of transactions exceeds 200, according to the Form 1099-K instructions (Rev. December 2026) and the IRS FAQs; payment card transactions have no minimum. Receiving or not receiving the form does not change whether income is taxable, and the IRS steps for a form received in error are below.
Maintained by Archie Chang · Sources checked against IRS text on November 2, 2026 · Methodology & sources
What Form 1099-K reports
The IRS describes the form in three places. The About page and the Understanding page say:
“A payment settlement entity (PSE) must file Form 1099-K for payments made in settlement of reportable payment transactions for each calendar year. A PSE makes a payment in settlement of a reportable payment transaction, that is, any payment card or third party network transaction, if the PSE submits the instruction to transfer funds to the account of the participating payee to settle the reportable payment transaction.”
“Form 1099-K is a report of payments you received for goods or services during the year from:
Credit, debit or stored value cards such as gift cards (payment cards)
Payment apps or online marketplaces, also called third party settlement organizations or TPSOs
These organizations are required to fill out Form 1099-K and send copies to the IRS and to you.”
The instructions printed on the payee copy of the form say why you got one:
“You have received this form because you have either (a) accepted payment cards for payments, or (b) received payments through a third party network in the calendar year reported on this form. Merchant acquirers and third party settlement organizations, as payment settlement entities (PSEs), must report the proceeds of payment card and third party network transactions made to you on Form 1099-K under Internal Revenue Code section 6050W.”
The reporting threshold
The instructions (Rev. December 2026) give the amounts for a payment app or online marketplace, which the IRS calls a third party settlement organization (TPSO). Both numbers must be exceeded: more than $20,000 and more than 200 transactions.
“Exception for de minimis payments. A TPSO is required to report any information concerning third party network transactions of any participating payee only if for the calendar year:
The gross amount of total reportable payment transactions exceeds $20,000, and
The total number of such transactions exceeds 200.”
The instructions repeat it near the start, and Publication 1099 (2026) has a matching passage:
“A third party settlement organization (TPSO) is required to report payments in settlement of third party network transactions with any participating payee that exceed $20,000, and the total number of such transactions exceeds 200. See Exception for de minimis payment, later, for more information.”
“Form 1099-K reporting for calendar years beginning after 2010. Third-party settlement organizations (TPSOs) must report transactions under section 6050W(e) only if, in a calendar year, both of the following are met. 1. Over $20,000 in total amount of payments. 2. Over 200 in total number of transactions.”
IRS news release IR-2025-107 and Fact Sheet FS-2025-08 describe how the amount came back, and Fact Sheet FS-2025-08 gives the amount in force before it:
“The OBBB retroactively reinstated the reporting threshold in effect prior to the passage of the American Rescue Plan Act of 2021 (ARPA) so that third party settlement organizations are not required to file Forms 1099-K unless the gross amount of reportable payment transactions to a payee exceeds $20,000 and the number of transactions exceeds 200.”
“Under the ARPA reporting threshold, TPSOs, which are a type of PSE, were required to file Form 1099-K for any payee that received more than $600 in total payments for the sales of goods or services, regardless of the number of transactions. Subsequently, Notices 2023-10, 2023-74 and 2024-85 were issued to provide transition periods and penalty relief for the implementation and enforcement of the ARPA changes to the reporting threshold for TPSOs.”
Publication 1099 (2026) heads its passage “Form 1099-K reporting for calendar years beginning after 2010”, and IR-2025-107 says the earlier threshold was retroactively reinstated. Our 1099 reporting thresholds page uses the same two amounts for payment apps for 2025 and 2026 and also covers Forms 1099-NEC and 1099-MISC.
| Type of transaction | Reporting amount in the IRS text | Where |
|---|---|---|
| Payment card (credit, debit, stored-value or gift card) transactions | No threshold amount that must be met | Fact Sheet FS-2025-08, Q2 |
| Third party network (payment app, online marketplace) transactions | Over $20,000 and over 200 transactions | Instructions for Form 1099-K, box 1a; Publication 1099 (2026) |
| Backup withholding by a TPSO | Both over $20,000 and over 200 transactions, or reportable payments to the payee during the preceding calendar year | Publication 1099 (2026) |
“There is no threshold amount that must be met to receive a Form 1099-K due to payments received through a payment card transaction.”
“There is a threshold for payments received through a TPSO. TPSOs are required to report when total gross payments for goods or services exceed $20,000 and there are more than 200 transactions for a payee. Your state may have a lower reporting threshold for TPSOs, which could result in you receiving a Form 1099-K, even if the total gross payments and transactions did not exceed the federal reporting threshold.”
“Form 1099-K backup withholding for calendar years beginning after 2024. TPSOs must perform backup withholding under section 3406 only if, in a calendar year, either: 1. Both of the following are met: a. Over $20,000 in total amount of payments, and b. Over 200 in total number of transactions; or 2. One or more payments in settlement of third party network transactions made by the payor to the payee during the preceding calendar year were reportable payments.”
Getting a form below the threshold
The IRS says a form can arrive even when the threshold is not met:
“A payment app or online marketplace is required to send you a Form 1099-K if the payments you received for goods or services total over $20,000 in more than 200 transactions. However, they may send you a Form 1099-K with lower amounts and/or transactions.”
“If your customers or clients pay you directly by credit, debit or gift card, you'll get a Form 1099-K from your payment card processor no matter how many payments you got or how much they were for.”
“In addition, you may receive a Form 1099-K from other payment settlement entities, such as merchant acquiring entities, because they do not have a de minimis reporting threshold.”
It also says the threshold has no effect on whether the income is taxable:
“Yes, the Form 1099-K reporting threshold doesn’t affect whether payments are taxable or whether a tax return must be filed. All income, no matter the amount, is taxable unless the tax law says it isn’t – even if you don’t get a Form 1099-K.”
“Reminder: Whether or not you receive a Form 1099-K, you must still report any income on your tax return. This includes payments for any goods you sell (including personal items such as clothing or furniture sold at a gain) or services you provide.”
Who sends a Form 1099-K
“Every PSE or other party which submits instructions to transfer funds to the account of a participating payee, in settlement of reportable payment transactions, must file an information return (Form 1099-K) with respect to each participating payee for that calendar year.”
“A PSE is a domestic or foreign entity that is a merchant acquiring entity, that is, a bank or other organization that has the contractual obligation to make payment to participating payees in settlement of payment card transactions; or a TPSO, that is, the central organization that has the contractual obligation to make payments to participating payees of third party network transactions.”
“Note: Healthcare networks, in-house accounts payable departments, and automated clearing houses do not qualify as TPSOs and do not report under section 6050W.”
“Nonreportable transactions. The following transactions are nonreportable under section 6050W.
A withdrawal of funds at an automated teller machine (ATM) via payment card, or a cash advance or loan against the cardholder’s account.
A check issued in connection with a payment card that is accepted by a merchant or other payee.
Any transaction in which a payment card is accepted as payment by a merchant or other payee who is related to the issuer of the payment card.”
The instructions also say how Form 1099-K relates to Forms 1099-NEC and 1099-MISC:
“Payments made by payment card or through a third party payment network after December 31, 2010, that otherwise would be reportable under sections 6041 (payments made in the course of a trade or business to another person) or 6041A(a) (payments of remuneration for services and certain direct sales) and 6050W are reported under section 6050W and not section 6041 or 6041A.”
For those two forms see our Form 1099-NEC page.
Due dates
Publication 1099 (2026) has one row for Form 1099-K in its Guide to Information Returns:
“1099-K Payment Card and Third Party Network Transactions
Payment card transactions. All amounts
February 28* January 31
Third party network transactions.
More than $20,000 in aggregate amount of payments and more than 200 in aggregate number of transactions”
“* The due date is March 31 if filed electronically.”
“If any filing due date in these instructions falls on a Saturday, Sunday, or a legal holiday, you will be considered to have timely filed if you file by the next day that is not a Saturday, Sunday, or a legal holiday.”
The IRS Understanding page and the instructions both say the payee gets a copy:
“Payment card companies, payment apps and online marketplaces are required to fill out Form 1099-K and send it to the IRS each year. They must also send a copy to you by January 31.”
“If you are required to file Form 1099-K, you must furnish a statement to the payee.”
Form 1099-K boxes
Box labels are as printed on Form 1099-K (Rev. December 2026), catalog number 54118B, and the description in column 3 is the sentence from the Instructions for Payee printed on that form. The opening section of the instructions says box 1c was added because P.L. 119-21, section 70201, requires the reporting of cash tips, and that box 1d uses the Treasury Tipped Occupation Code(s).
| Box | Printed on the form | Instructions for Payee say |
|---|---|---|
| 1a | Gross amount of payment card/third party network transactions | “Box 1a. Shows the aggregate gross amount of payment card/third party network transactions made to you through the PSE during the calendar year.” |
| 1b | Card Not Present transactions | “Box 1b. Shows the aggregate gross amount of all reportable payment transactions made to you through the PSE during the calendar year where the card was not present at the time of the transaction or the card number was keyed into the terminal. Typically, this relates to online sales, phone sales, or catalogue sales.” |
| 1c | Cash tips | “Box 1c. Shows the total amount of cash tips reported by the filer. “Cash tips” include tips received in cash or charged. This amount is also included in the amount reported in box 1a.” |
| 1d | TTOC (Treasury Tipped Occupation Code) | “Box 1d. Shows up to two Treasury Tipped Occupation Code(s) (TTOC) for your tipped occupation(s).” |
| 2 | Merchant category code | “Box 2. Shows the merchant category code used for payment card/third party network transactions (if available) reported on this form.” |
| 3 | Number of payment transactions | “Box 3. Shows the number of payment transactions (not including refund transactions) processed through the payment card/third party network.” |
| 4 | Federal income tax withheld | “Box 4. Shows backup withholding. Generally, a payer must backup withhold if you did not furnish your TIN or you did not furnish the correct TIN to the payer.” |
| 5a–5l | January through December (monthly amounts) | “Boxes 5a–5l. Show the gross amount of payment card/third party network transactions made to you for each month of the calendar year.” |
| 6–8 | State income tax withheld; State identification no.; State | “Boxes 6–8. Show state and local income tax withheld from the payments.” |
““Gross amount” means the total dollar amount of total reportable payment transactions for each participating payee without regard to any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts, shipping amounts, or any other amounts.”
What the IRS says to do with a Form 1099-K
“If you got a Form 1099-K, understand why you received it. Then use the form and your other records to help figure and report your correct income on your tax return.”
“The gross payment amount isn't adjusted for any:
Fees
Credits
Refunds
Shipping
Cash equivalents
Discounts
These items are not taxable income. You can deduct them from the gross amount. Check your records.”
“Just because a payment is reported on Form 1099-K doesn't mean it's taxable. Good recordkeeping is important to support the income and deductible expenses you report on your tax return.”
Personal items
“A personal item is something you owned for personal use such as a car, refrigerator, furniture, stereo, jewelry or silverware, etc.”
“How you report these payments on your tax return depends on whether you sold the item at a loss or a gain. If you sold a mix of personal items at a loss and a gain, report losses and gains separately.
Personal items sold at a loss
A loss on the sale of a personal item can't be deducted from your taxes. But you can zero out the reported gross income so you don't pay taxes on it.
If you sold items at a loss, which means you sold the items for less than you paid, there is no tax liability. You have 2 options to report the loss:
Report the payment on your tax return at the top of Schedule 1 (Form 1040) PDF. This will ensure you don’t pay taxes you don't owe; or
Report the loss on Form 8949, Sales and Other Dispositions of Capital Assets, which carries to Schedule D, Capital Gains and Losses.”
“Personal items sold at a gain
If you made a profit or gain on the sale of a personal item, your profit is taxable. The profit is the difference between the amount you received for selling the item and the amount you originally paid for the item.
If you receive a Form 1099-K for a personal item sold at a gain, figure and report the gain on both:
Form 8949, Sales and other Dispositions of Capital Assets
Schedule D (Form 1040), Capital Gains and Losses”
Goods, rentals and services
“Here's where to report Form 1099-K payments on your tax return for goods and services you sold:
Gig worker, freelancer, hobby seller and other self-employed – You're considered a sole proprietor and should report Form 1099-K payment information on – Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship).
Partnership – Use Schedule E, (Form 1040), Supplemental Income and Loss.
Corporation – Use Form 1120, U.S. Corporation Income Tax Return or Form 1120-S, U.S. Income Tax Return for an S Corporation.
Rental income may be reported on Schedule E or Schedule C.”
The Schedule C line numbers are in our Schedule C page.
A form received in error
“Money you received from friends and family as a gift or repayment for a personal expense should not be reported on a Form 1099-K. These payments aren't taxable income.”
“You may get a Form 1099-K when you shouldn't have if it:
Reports personal payments from family or friends like gifts or reimbursements
Doesn't belong to you
Duplicates a Form 1099-K you already received”
“If this happens:
Contact the issuer immediately – see "Filer" on the top left corner of Form 1099-K to find out the name and contact information of the issuer.
Ask for a corrected Form 1099-K that shows a zero amount.
Keep a copy of the original form and all correspondence with the issuer for your records.
Don't wait to file your taxes. File even if you can't get a corrected Form 1099-K.”
“Don't contact the IRS. We can't correct your Form 1099-K.”
What this page does not cover
- It does not decide whether a particular payment is taxable, a gift, a reimbursement or business income.
- State thresholds differ from the federal one; the IRS Fact Sheet FS-2025-08 says only that a state may have a lower reporting threshold for TPSOs, and this page has no state amounts.
Frequently asked questions
What is the Form 1099-K reporting threshold?
The Instructions for Form 1099-K (Rev. December 2026) say a third party settlement organization (TPSO) is required to report only if the gross amount of total reportable payment transactions exceeds $20,000 and the total number of such transactions exceeds 200 for the calendar year. IRS news release IR-2025-107 says the One, Big, Beautiful Bill retroactively reinstated that threshold, in effect before the American Rescue Plan Act of 2021.
Is there a minimum for payment card transactions?
No. IRS Fact Sheet FS-2025-08 says there is no threshold amount that must be met to receive a Form 1099-K due to payments received through a payment card transaction, and gives the example that $0.01 of payment card payments should produce a form. The Understanding your Form 1099-K page says a card processor sends the form no matter how many payments you got or how much they were for.
Can I get a Form 1099-K below $20,000 or 200 transactions?
Yes. The IRS says a payment app or online marketplace may send a Form 1099-K with lower amounts or fewer transactions, that other payment settlement entities such as merchant acquiring entities have no de minimis threshold, and that your state may have a lower reporting threshold for TPSOs. Fact Sheet FS-2025-08 states each of these points.
Do I report income if I do not get a Form 1099-K?
The IRS says yes: the Form 1099-K reporting threshold doesn’t affect whether payments are taxable or whether a tax return must be filed, and all income, no matter the amount, is taxable unless the tax law says it isn’t. Income also includes amounts not reported on forms, such as payments received in cash, property or services (Fact Sheet FS-2025-08, Q7).
What does the IRS say to do if I got a Form 1099-K for personal items I sold?
The IRS page What to do with Form 1099-K says a loss on the sale of a personal item can’t be deducted, and gives two ways to report items sold at a loss: at the top of Schedule 1 (Form 1040), or on Form 8949. For items sold at a gain it says the profit is taxable and to report the gain on Form 8949 and Schedule D (Form 1040). The IRS also says to report losses and gains separately if you sold a mix of personal items at a loss and a gain.
What if the form shows money from friends or family, or is not mine?
The IRS says money received from friends and family as a gift or repayment for a personal expense should not be reported on a Form 1099-K. If you get a form you shouldn’t have, the IRS page lists these steps: contact the issuer, ask for a corrected form showing a zero amount, keep a copy of the original and the correspondence, and file your taxes even if you can’t get a corrected form. It also says the IRS can’t correct your Form 1099-K.
When is Form 1099-K due?
Publication 1099 (2026) lists February 28 for filing with the IRS (March 31 if filed electronically) and January 31 for the copy to the recipient. The IRS page Understanding your Form 1099-K also says the issuer must send a copy to you by January 31. Publication 1099 adds that a filing due date falling on a Saturday, Sunday or legal holiday is met by filing on the next day that is not one.
Related IRS form pages and calculators
- Schedule C (Form 1040): Profit or Loss From Business, Line by Line
- IRS Form 843: Claim for Refund and Request for Abatement
- Schedule K-1: What It Is and How It’s Used (Form 1065, 1120-S, 1041)
- 1099 reporting thresholds
- Form 1099-NEC: who gets one, threshold and due date
- Form 1099-MISC
- Estimated tax due dates
- Capital gains tax calculator
Sources (checked November 2, 2026): IRS: Form 1099-K (Rev. December 2026), PDF · IRS: Instructions for Form 1099-K (Rev. December 2026), PDF · IRS: About Form 1099-K · IRS: Understanding your Form 1099-K · IRS: What to do with Form 1099-K · IRS: Form 1099-K FAQs · IRS: IR-2025-107, FAQs on Form 1099-K threshold under the One, Big, Beautiful Bill · IRS: Fact Sheet FS-2025-08, Form 1099-K FAQs, PDF · IRS: Publication 1099, General Instructions for Certain Information Returns (2026), PDF