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

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.