Form 1099-K is issued by third-party settlement organizations and payment processors (such as PayPal, Venmo, Stripe, or marketplaces) to report payments made for goods or services. The reporting threshold determines when a payee must receive this form.
Changes for 2025
- The $600 reporting threshold that was scheduled has been repealed by the One Big Beautiful Bill Act.
- The previous standard is reinstated: a Form 1099-K must be issued when both of the following conditions are met in a calendar year:
- More than $20,000 in gross payments, and
- More than 200 transactions.
What This Means
Payment platforms will continue to track transactions and report only when the thresholds are exceeded.
Small sellers and casual users of payment apps will no longer get a 1099-K unless they cross both the $20,000 and 200-transaction thresholds.
Even without a 1099-K, taxpayers must still report all taxable income on their returns.
These changes mean that small and large businesses alike will need to be prepared for expanded reporting responsibilities in 2024.
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