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FAQ5 min readMar 17, 2026
What Is Form 1099-K and Who Gets One?
New IRS rules for Form 1099-K are affecting millions of people who sell online or use payment apps. Here's what you need to know.
Form 1099-K Explained
What Is Form 1099-K?
Form 1099-K reports payment transactions processed through third-party payment networks like:
- PayPal, Venmo, Cash App
- eBay, Etsy, Amazon
- Airbnb, Uber, Lyft
New Reporting Thresholds
Previous threshold: Over $20,000 AND 200+ transactions
New threshold (phased in):
- 2024: $5,000+
- 2025: $2,500+
- 2026+: $600+
What's Taxable?
- Income from selling goods or services for profit
- Gig economy earnings
- Selling items for MORE than you paid
What's NOT Taxable
- Personal payments (splitting dinner, paying a friend back)
- Selling personal items for LESS than you paid (no gain)
- Gifts received
What You Should Do
- Keep records of the cost basis of items sold
- Distinguish between business and personal transactions
- Don't ignore the form — the IRS receives a copy
The Confusion
Many people receive 1099-Ks for non-taxable transactions. The key is reporting correctly, not paying tax on everything.
Got a 1099-K and aren't sure what to do? We'll help you sort out what's taxable and what isn't.