The current threshold
Legislation enacted in 2025 restored the earlier threshold: a payment app or online marketplace is required to send a Form 1099-K only if you received more than $20,000 in gross payments for goods or services and had more than 200 transactions in the calendar year. The lower $600 threshold that had been scheduled to phase in no longer applies. This applies to third-party settlement organizations; verify in IRS Publication 1099 and the IRS 1099-K pages.
But you can still get a 1099-K below the threshold
The IRS notes that a platform may still send a 1099-K for smaller amounts. Also, payment card processors (merchant acquiring entities) report card payments to merchants without a de minimis threshold, so you may get a 1099-K from a card processor even for small amounts.
Income is taxable whether or not you get a form
This is the most important point: if you received payment for goods or services, you must report it on your return no matter how small and whether or not you receive a 1099-K. Likewise, receiving a 1099-K doesn’t mean all the money is taxable income.
Personal payments vs. business payments
Money you receive from friends or family — splitting a dinner bill, a birthday gift, reimbursement for rent — is generally not taxable income and shouldn’t be reported on a 1099-K. Payment apps are supposed to ask you to mark payments as goods and services versus personal; payments labeled “friends and family” generally aren’t counted. If you receive a 1099-K that includes personal payments, document that and report only the taxable portion.
Selling personal items at a loss
If you sold personal belongings (like used furniture) for less than you paid, you generally have no taxable gain and the loss is not deductible. The 1099-K may show gross receipts, but you can reflect that correctly: report the sale and show that there was no taxable gain, following the IRS instructions. Keep records of your original purchase price.
How to report 1099-K income
- Business sales or services: report on Schedule C; deduct business expenses; pay self-employment tax if net earnings reach $400. See self-employment tax.
- Hobby income: reported as other income; hobby expenses generally aren’t deductible.
- Personal item sales: report the sale on Form 8949/Schedule D if there is a gain; no reporting is generally needed for a loss on personal-use property, but follow IRS guidance.
If the 1099-K is wrong
Contact the platform and request a corrected form. If you can’t get one, report the income correctly with a statement and keep documentation. Don’t ignore it: the IRS gets a copy, and mismatches generate notices. Our audits and notices page explains what to do.
Don’t double-count
If you received both a 1099-K and a 1099-NEC for the same payments, report the income once. The IRS says payments made with a payment card or through a third-party network are reported on 1099-K instead of 1099-NEC. See 1099-NEC.
Keep good records
Track sales, fees, refunds and expenses throughout the year. Platform fees and shipping costs are often deductible against business sales.
Frequently asked questions
What is the 1099-K threshold now?
More than $20,000 in gross payments and more than 200 transactions for third-party settlement organizations, per the IRS.
Do I have to report income if I don’t get a 1099-K?
Yes. Income from selling goods or services is reportable whether or not you receive a form.
Are payments from friends and family on a 1099-K taxable?
Generally no. Personal gifts and reimbursements are not income, but keep documentation if they appear on a form.
Official sources
- IRS: Understanding your Form 1099-K
- IRS Publication 1099: General instructions for information returns
- IRS: Self-Employed Individuals Tax Center
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.