For 2022, if you receive more than $20,000 and 200 transactions for business payments on a P2P platform during the tax year, the platform is required to send Form 1099-K to you and the IRS. This threshold is reduced to $600 without regard to the number of transactions beginning in 2023.
You are still required to report this income on your tax return. You can do this by using Form 1040 Schedule C. This form is for self-employment income and expenses.
Here's how to add your self-employment income:
- Open or continue your return
- Search for schedule c and select the Jump to link in the search results
- Answer Yes to Did you have any self-employment income or expenses?
- If you've already entered self-employment work and need to enter more, select Add another line of work
- Follow the on-screen instructions
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