Hi @PM01982! Thanks for your question.
Beginning with 2023, the threshold of $600 without any consideration to the number of transactions will apply. If you use a peer-to-peer payment platform like PayPal, Venmo or CashApp to make payments between friends and they are classified as friends-and-family payments, you generally shouldn’t receive a 1099-K form reporting these payments. However, the individual/business making payments to you marks the payments as business transactions and the amounts total more than the threshold during the year, you will likely receive a 1099-K form reporting these payments.
If you receive an Form 1099-K for income that is not taxable income, the IRS provides information on how to report this amount. You can report the amount in Part 1, Line 8z, Other Income of Schedule 1, Addition Income and Adjustments to Income and also report the the non-taxable amount in Part 2, Line 24z, Other Adjustments of the same form. This process adds an amount to your income and then subtracts an amount from your income while at the same time accounting for the amount shown on the 1099-K on your tax return so that it matches the IRS records.
If you're interested, you can read more at our blog article Did You Get a Form 1099-K and Aren’t Self-Employed or a Small Business?
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