About 1099k received from PayPal

Hi, I just received 1099k from PayPal. My gross number are only 2500. It’s not meet federal minimum requirements for $20000 but I still receive it. I guess it’s because My PayPal address are Illinois.

1:should I only file this only in Illinois?because my W2 and all other documents are in MN. Should I count this as other state income?

2:Since I don’t think it’s self employment.can I file it using free edition? If not. Which CD version should I buy to fill this form?