What is a Form 1099-K?

Form 1099-K is a tax form used to report transactions taking place within payment networks to improve tax compliance.

Form 1099-K is provided to the IRS (and to some states) to report certain payments sent or received within third-party settlement organizations. Use this form in conjunction with other tax records (bank statements, invoices, etc.) to report taxable income, if any. Please consult your tax advisor to determine your tax reporting requirements.

Payment processors are required to issue 1099-K forms to accountholders who received payments for goods and services that exceed certain federal or state reporting thresholds. The federal threshold for reporting transactions in 2023 is $20,000 in payments from over 200 transactions.