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.