The 1099-K is a tax information form used to report payment transactions processed through payment cards or third-party payment networks. When a payment settlement entity (such as a payment app or marketplace) is required to issue a 1099-K, a copy must be delivered to the payment recipient and filed with the IRS.
Who receives a 1099-K?
Recipients of a 1099-K are generally individuals or businesses (including merchants and gig workers) who received payments for goods or services through a third-party settlement organization such as online marketplaces or payment apps.
Whether or not a recipient receives a 1099-K, all income must still be reported on the taxpayer’s federal tax return — receiving a form does not change the obligation to report taxable income.
2025 Reporting Threshold
For tax year 2025, the federal reporting threshold for Form 1099-K has reverted to the higher historical standard:
You will generally receive a 1099-K from a third-party payment network only if both of the following occur in the calendar year:
You receive more than $20,000 in gross payments for goods or services, and
You have more than 200 payment transactions.
This threshold reinstates the long-standing pre-2022 standard of $20,000 and 200 transactions for third-party settlement organizations.
What this means in practice
If, during 2025, your gross payments for goods or services through a third-party payment platform do not exceed both $20,000 and 200 transactions, you generally will not receive a 1099-K from that platform.
Receipt of a 1099-K is an informational reporting requirement — it does not change taxable income, which must be reported regardless of whether a form is issued.
Some payment settlement entities may choose to issue a 1099-K even if the federal threshold isn’t met. Also, state tax reporting thresholds vary and may be lower.
How the form summarizes your account activity
The 1099-K form summarizes the gross amount of reportable sales or payment transactions processed through the platform for the calendar year. It will be provided to both you and the IRS if the reporting thresholds above are met.
This article is neither legal advice nor tax advice. We recommend that you speak to your tax advisor with any questions or concerns about tax reporting.