VALID › Notice Library › Form 1099-K
In the IRS’s own words · not reviewed by VALID
1099-K notice explained, in the IRS’s own words
Who sends Form 1099-K
Read the full 1099-K page on irs.gov ↗
On this page
- Who sends Form 1099-K
- Who gets Form 1099-K
- Reporting threshold
- Personal payments from family and friends
Who sends Form 1099-K
Payment card companies, payment apps and online marketplaces are required to fill out Form 1099-K and send it to the IRS each year. They must also send a copy to you by January 31.
Who gets Form 1099-K
You should get Form 1099-K for these situations:
If you take direct payment by credit or bank card for selling goods or providing services
Find what to do with Form 1099-K.
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If you used a payment app or online marketplace
However, they may send you a Form 1099-K with lower amounts and/or transactions.
The payments can be made through any:
- Payment app
- Online community marketplace
- Craft or maker marketplace
- Auction site
- Car sharing or ride-hailing platform
- Ticket exchange or resale site
- Crowdfunding platform
- Freelance marketplace
If you accept payments on different platforms, you could get more than one Form 1099-K.
Find what to do with Form 1099-K.
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Reporting threshold
You may receive a Form 1099-K even when total payments or transactions are less than the reporting threshold.
This includes payments for any goods you sell (including personal items such as clothing or furniture sold at a gain) or services you provide.
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Personal payments from family and friends
Money you received from friends and family as a gift or repayment for a personal expense should not be reported on a Form 1099-K. These payments aren't taxable income.
For example: Sharing the cost of a car ride or meal, receiving money for birthday or holiday gifts or getting repaid by a roommate for rent or a household bill.
Be sure to note these types of payments as non-business in the payment apps when possible.
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Are you making extra cash selling stuff or providing a service?
Transcript
What to do next
- Write down the date on the letter today.
- Look the number up on irs.gov yourself. Don’t trust a link or phone number from anyone else.
- If it says you owe money or proposes changes to your return, take it to a licensed CPA, EA or tax attorney before that date.
Not advice. Not a filing. Verify with a licensed professional. Rules change by year and facts.