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Why did I receive a 1099-K even though it's below the IRS threshold?

SOLVEDby TurboTax66Updated January 04, 2024

Form 1099-K tracks income you receive, usually through credit cards or processors like PayPal, Venmo, Square, Etsy, Uber, or Ebay, for selling goods or providing services.

You should receive a 1099-K if you made over $20,000 from more than 200 transactions.

However, some states have lower 1099-K filing thresholds than the IRS:

  • Arkansas-$2,500
  • District of Columbia-$600
  • Illinois-$1,000 and 4 transactions
  • Maryland-$600
  • Massachusetts-$600
  • Mississippi-over $600
  • New Jersey-$1,000
  • Rhode Island-$100
  • Vermont-$600
  • Virginia-$600

Regardless of the dollar amount on your 1099-K, you need to report all taxable income to the IRS.

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