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. On November 21st, the IRS announced that the 1099-K filing threshold will remain at 20,000 USD and 200 transactions for tax year 2023.
If the gross amount of total reportable payments exceeds $20,000 and the total number of such transactions exceeds 200 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.
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.
Jan. 5, 2024