Form 1099-K

tax

Also known as: 1099-K, Form 1099-K, payment card transactions

Updated May 11, 2026 · Written and reviewed by Konstantin Iakovlev

Detailed explanation

Issued by payment processors (PayPal, Venmo, Stripe, Square), e-commerce platforms (eBay, Etsy, Amazon), and gig platforms (Uber, DoorDash). Reports gross transactions, NOT net (so an Etsy seller with $5K gross sales but $4K of cost basis still gets a 1099-K). The 2021 American Rescue Plan reduced the threshold from $20K+200 transactions to $600 — but IRS delayed implementation multiple times due to confusion. 2026 threshold is $5K (final delay). Personal payments (like splitting dinner via Venmo) are NOT supposed to trigger 1099-K but sometimes do incorrectly — keep records.

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Related tax terms

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Modified Adjusted Gross Income (MAGI)

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Standard Deduction

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Marginal Tax Rate

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Effective Tax Rate

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