Will I get a 1099-K?
| How you were paid in the year | Form 1099-K? |
|---|---|
| Payment app or online marketplace: $25,000 for goods or services in 250 payments | Yes, required |
| Payment app or online marketplace: $25,000 in 150 payments | Not required (200 or fewer payments), but you may still get one |
| Payment app or online marketplace: $5,000 in 300 payments | Not required ($20,000 or less), but you may still get one |
| Customers paid by credit, debit or gift card through your card processor, any amount | Yes, there is no minimum |
| Friends and family: gifts, splitting dinner, rent or a ride | No, these shouldn't be reported |
| You paid for things with a card or an app | No, purchases aren't reported |
Both conditions must be met for a payment app or marketplace: more than $20,000 and more than 200 transactions in the calendar year. They count per platform, so if you sell on several, you could get more than one form. The form comes by January 31.
What changed
A 2021 law, the American Rescue Plan Act, had lowered the threshold for payment apps and marketplaces to more than $600, with no minimum number of transactions. The IRS put it off several times with transition relief. The 2025 tax law, the One, Big, Beautiful Bill (the IRS now calls it the Working Families Tax Cuts), retroactively brought back the threshold in effect before the 2021 law: more than $20,000 and more than 200 transactions. The IRS hasn't named a start year on its pages; it describes the change only as retroactive.
Card payments never had a threshold. If customers pay you directly by credit, debit or gift card, your card processor sends a Form 1099-K "no matter how many payments you got or how much they were for."
You can still get one below the threshold
- A payment app or marketplace may send a Form 1099-K for lower amounts anyway.
- Your state may have a lower reporting threshold, so you can get a form even under the federal one.
- If the app performed backup withholding for you in the prior year, it must file a Form 1099-K.
Income is taxable with or without a form
The threshold only decides when a company has to send the form. In the IRS's words: "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." That includes payments in cash, property, goods or digital assets.
- Selling goods or services as a gig worker, freelancer or hobby seller: report it on Schedule C (Form 1040).
- Selling a personal item for more than you paid, such as concert tickets: the profit is taxable. Report it on Form 8949 and Schedule D.
- Selling a personal item for less than you paid, such as used furniture: there's no tax, and the loss isn't deductible. Report the amount at the top of Schedule 1 (Form 1040) or on Form 8949.
The amount in box 1a is the gross total. It doesn't subtract fees, refunds, shipping, credits or discounts; those aren't income, and you can deduct them using your own records.
Personal payments aren't income
The IRS says: "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." Its examples: sharing the cost of a car ride or meal, birthday or holiday gift money, or a roommate paying you back for rent or a household bill. Mark these payments as personal (non-business) in the app when you can, so they aren't counted.
Got a 1099-K by mistake?
You may get a form you shouldn't have if it reports personal payments, isn't yours, or duplicates a form you already received. The IRS steps:
- Contact the issuer right away. Its name and contact details are under "Filer" in the top left corner of the form.
- Ask for a corrected Form 1099-K that shows zero.
- Keep a copy of the original form and all your messages with the issuer.
- Don't wait to file. If you can't get a corrected form, report the amount from the incorrect form in the entry space at the top of Schedule 1 (Form 1040).
Don't contact the IRS about it: "We can't correct your Form 1099-K."
Backup withholding: proposed rules
Backup withholding is tax a payer holds back, usually because your Social Security number or ITIN is missing or wrong. On January 8, 2026, the Treasury and the IRS proposed regulations that would apply the same threshold to it: payment apps and marketplaces generally wouldn't have to backup withhold unless your payments are more than $20,000 and more than 200 transactions. These rules are proposed, not final. To avoid backup withholding, give each app your correct number. If tax was withheld, it shows in box 4 of Form 1099-K; report it on your return to get credit for it.
New tip boxes on the form
The December 2026 Form 1099-K instructions add box 1c for cash tips and box 1d for the Treasury tipped occupation code, because the 2025 law requires cash tips to be reported. If you earn tips, see the no tax on tips calculator. To see how side income changes your refund, use the tax refund calculator.
Common questions
What is the 1099-K threshold for 2026? Payment apps and online marketplaces must send a Form 1099-K when your payments for goods or services through that platform are more than $20,000 and there are more than 200 transactions. Payments by card through a card processor are reported at any amount. Some states have lower thresholds.
Is the $600 1099-K rule gone? Yes. The 2025 tax law retroactively brought back the threshold in effect before the American Rescue Plan Act of 2021: more than $20,000 and more than 200 transactions. The $600 rule from that 2021 law no longer applies.
Do I have to report income if I don't get a 1099-K? Yes. The IRS says 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.
Are payments from friends and family taxable? No. Gifts and repayments for shared costs, such as splitting a meal, rent or a ride, aren't taxable income and shouldn't be reported on a Form 1099-K. Mark them as personal in the app when you can.
I sold used personal items and got a 1099-K. Do I owe tax? Not on items you sold for less than you paid. Enter the 1099-K amount in the entry space at the top of Schedule 1 (Form 1040), or report the sales on Form 8949. Items sold for more than you paid are a taxable gain on Form 8949 and Schedule D.
What should I do if I got a 1099-K by mistake? Contact the company named as the filer in the top left corner of the form and ask for a corrected form showing zero. Keep copies. If it isn't fixed in time, don't wait to file: report the amount in the entry space at the top of Schedule 1 (Form 1040). The IRS can't correct the form for you.
Published November 6, 2026. Source: IRS, "Form 1099-K FAQs: General information" and "Form 1099-K FAQs: What to do if you receive a Form 1099-K" (IRS Fact Sheet 2025-08); "Understanding your Form 1099-K"; "What to do with Form 1099-K"; Instructions for Form 1099-K (12/2026); IRS news release IR-2026-03 (January 8, 2026).