IRS Clarifies Form 1099-K Reporting Thresholds
Form 1099-K is used to report payments received for goods or services processed through payment apps, online marketplaces, and credit cards.
The One Big Beautiful Bill Act (OBBBA) has introduced changes to the reporting thresholds for Form 1099-K, which affects payment card and third-party network transactions.
- Form 1099-K: reports payments for goods or services through payment apps (e.g., PayPal, Zelle), online marketplaces (e.g., eBay), and credit cards.
- Form 1099-MISC: reports payments not covered by other 1099 forms.
- Form 1099-NEC: reports nonemployee compensation.
The IRS has issued FAQs to help taxpayers understand the OBBBA provisions and their impact on Form 1099-K.
No tax on tips is one of the provisions in the OBBBA.
Autor's resume: IRS clarifies Form 1099-K reporting.