Form 1099-K tracks payments you’ve received through a payment settlement entity (PSE) in the past year. These include payments made via:
- Credit cards
- Online payment services like Ebay, PayPal, and Venmo
- Freelancing platforms like Upwork that manage client payments
Form 1099-K reports the gross amount of the transactions, but doesn't include any adjustments for credits, refunds, discounts, or fees.
You might receive a 1099-K if:
- 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
- Next year (tax year 2022), this is changing to over $600 in sales
