What Is Form 1099-K?

Form 1099-K is an IRS information return that reports certain payments you received for goods or services through:

• payment cards, such as credit, debit, or stored-value cards
• payment apps
• online marketplaces and other third-party settlement organizations

It is sent by the payment settlement entity to you and to the IRS.

A Form 1099-K does not automatically mean the full amount on the form is taxable. It reports gross payments, so you generally must use the form together with your own books and records to determine the correct taxable amount.

Payment card transactions generally trigger Form 1099-K reporting regardless of amount, while third-party network thresholds are subject to phased IRS implementation rules and updates.

Personal payments generally should not be reported on Form 1099-K. For example, gifts, shared meal reimbursements, rent reimbursements, or money from friends and family for personal expenses are generally not Form 1099-K income.

If you receive a Form 1099-K that is wrong, you should ask the issuer for a corrected form. If you cannot get a corrected form in time, you still generally should file your return and report the amount using the IRS correction method.

State law note

State tax reporting rules can differ from the federal rules above. Some states may use lower reporting thresholds or separate information-reporting requirements. The controlling authority is the applicable state revenue department or tax agency.

Sources

IRS — About Form 1099-K, Payment Card and Third Party Network Transactions

IRS — Understanding your Form 1099-K

IRS — What to do with Form 1099-K

IRS — IRS revises and updates Form 1099-K frequently asked questions (Fact Sheet 2025-08)

IRS — Treasury, IRS issue proposed regulations reflecting changes to the Form 1099-K threshold

This information provided does not, and is not intended to, constitute legal advice.