What is a 1099-K form?

The 1099-K is a tax information form generally used to report payment transactions. When using a 1099-K for information reporting, 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 mostly merchants who have received payment using a third-party payment network like our system. Whether the recipient receives a 1099-K or not, we are still required to do the tax filings. The IRS announced that the 1099-K filing threshold will be more than $5000 and 0 transactions for tax year 2024.

If the gross amount of total reportable payments exceeds $5000 and the total number of such transactions exceeds 0 in a calendar year —and they're based in the US or are a US taxpayer—payees should expect to receive a 1099-K, either through paperless delivery or paper mailing.

The 1099-K form summarizes the sales activity of your account. It will be provided to you and the IRS, as well as some US states, if you processed more than $5,000 and had more than 0 transactions in 2024.

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.

Last updated:
Dec. 30, 2024