What is Form 1099-K?
Form 1099-K, Payment Card and Third Party Network Transactions, is used by credit card companies and third-party processors, like PayPal and Amazon, to report the payment transactions they process for retailers. It reports the gross amount of the transactions, but doesn't include any adjustments for credits, refunds, discounts, fees, etc.
Who gets a 1099-K?
- You accepted credit cards, debit cards or pre-paid cards.
- You had over $20,000 in sales and more than 200 individual transactions through a third party processor.