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Should I file a 1099-K when it has less than 20 transactions and less than $10K?

 
5 Replies
DianeW
Expert Alumni

Should I file a 1099-K when it has less than 20 transactions and less than $10K?

If you are asking whether you are required to complete, file with the IRS and issue Form 1099K to a customer then there is a "de minimis exception".

  • Q: Is there a de minimis exception for Forms 1099-K by third party settlement organizations?  
    • A: There is a “de minimis” exception from reporting for a third party settlement organization with respect to third party network transactions. If payments to a participating payee exceed $20,000 and exceed 200 transactions within the calendar year they must file for that participating payee.
  • For more information you can click the link here: IRS-General FAQs on Payment Cards & Third Party Transactions
  • Form 1099K

On the other hand, if you received a Form 1099K this is reported as self employment income simply by adding the income to your business and then recording your ordinary and necessary expenses to be able to earn this income. There is not a document entry for the Form 1099K. You are required to report this on your tax return. 

Please add a comment if you have more questions.

SUNNYKHB
New Member

Should I file a 1099-K when it has less than 20 transactions and less than $10K?

HI how i report income if i did'nt reeceive 1099k

Should I file a 1099-K when it has less than 20 transactions and less than $10K?

@SUNNYKHB   Do you have self employment income?

 

You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version.

 

How to enter income from Self Employment

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

 

How to enter a 1099K

https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-a-1099-k-in-turbotax-online...

Should I file a 1099-K when it has less than 20 transactions and less than $10K?

I raised $13k in Indiegogo funds in 2021 and used 100% of the funding for a project in the same tax year of 2021. I did not raise enough to receive a 1099-k tax form, so how do I go about reporting the income AND the expenses that broke me even on the funding raised?

FangxiaL
Expert Alumni

Should I file a 1099-K when it has less than 20 transactions and less than $10K?

Crowdfunding for business: funds raised are treated as gross income. Report the income on your Schedule C (if not treated as any other business entity) and deduct business-related expenses. 

Follow these steps to enter self-employment income and expenses:

  1.  Open or continue with your return
  2.  Click on Show more next to the Self-Employment under the Income  & Expenses section
  3.  Click on Start or Revisit next to Self-Employment income and expenses
  4.  Follow the screens to answer the questions 
  5. On the screen that says Let's enter the income for your xxx work, select Other self-employed income, includes 1099-K, cash, and checks
  6. After entering income, you can enter all the expenses related to your business activities.

 

@themegangill

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