What is Form 1099-K?

Form 1099-K tracks income you made from selling goods or providing services via payment apps and online marketplaces. Examples include PayPal, Venmo, Square, Etsy, Uber, and Ebay.

You should receive a 1099-K if you made more than $5,000 on one of these platforms.

Even if you don't receive a 1099-K, or you make less than $5,000, you still need to report all taxable income to the IRS.

You might also receive a 1099-K if you accepted payments via prepaid/gift cards or if your state has a lower reporting requirement than the IRS.

• Follow these steps to enter your 1099-K if you’re selling personal items
  • For example, you’re selling vintage clothes you collect on eBay 
• Follow these steps to enter your 1099-K if you make side income from your hobby
  • For example, you sell candles on Etsy 
• Follow these steps to enter your 1099-K if you’re self-employed
  • For example, you accept payments for your bakery via Square

Here are some more examples to better understand.

Example 1: Stephanie teaches a yoga class on the weekends at the park. Her students pay her for the class via Venmo. In 2024, she made more than $5,000 in Venmo payments. She'll receive a 1099-K from Venmo.

Example 2: Shane is a full-time student who drives for Lyft a few days per week. In 2024, their gross income from driving for Lyft was $7,000. Shane will receive a 1099-K from Lyft reporting that income.