02/07/2026
The IRS has changed the Form 1099-K reporting thresholds several times in recent years, which has understandably left many online sellers scratching their heads. Here’s how the thresholds have shifted:
For tax year 2023: You would only receive a Form 1099-K if your payments through third-party platforms (like PayPal®, Square®, Venmo®, etc.) totaled more than $20,000 and you had at least 200 transactions.
For tax year 2024: The IRS lowered the reporting threshold to $5,000, with no minimum number of transactions required.
Originally planned for 2025 and 2026: The IRS announced further drops to $2,500 for 2025 and eventually $600 for 2026, both with no transaction minimum. However, these lower thresholds have now been rolled back.
Current rule for 2025 and beyond: With the passage of the One Big Beautiful Bill, the 1099-K threshold has reverted to $20,000 in payments and at least 200 transactions for 2025 and future years.
If you meet the threshold for a given year, you’ll receive Form 1099-K from any payment app or online marketplace you used. This informational tax document reports the gross amount of your reportable transactions.
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