Can you please confirm the income threshold amount in which a Form 1099-K is required to be issued... is it $600 and above? Also, are there other factors that would require the Form to be issued (ex: doing a certain number of transactions for the year)? In other words, is it possible to still receive this Form without meeting the income threshold based on other determining factors? Thank you!
Hi Patrice1986,
Beginning in 2022, the payee must be issued a Form 1099-K if the service processed more than $600 worth of payments regardless of the number of individual payments or transactions. There is nolonger a threshhold for payment card transactions. Many entities that process card payments on behalf of their customers will issue a 1099-K form when the amount of payments and number of payments are far below this threshold. It is possible that the IRS could contact a taxpayer whose gross business income is less than the amount reported on the form.
Hi Patrice1986,
Beginning in 2022, the payee must be issued a Form 1099-K if the service processed more than $600 worth of payments regardless of the number of individual payments or transactions. There is nolonger a threshhold for payment card transactions. Many entities that process card payments on behalf of their customers will issue a 1099-K form when the amount of payments and number of payments are far below this threshold. It is possible that the IRS could contact a taxpayer whose gross business income is less than the amount reported on the form.