What is Form 1099-K?

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.

For tax year 2023, you should've receive a 1099-K if you made over $20,000 from more than 200 transactions.

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.

Even if you don't receive a 1099-K, or you make less than $20,000 from fewer than 200 transactions, you still need to report all taxable income to 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 $20,200 from over 200 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 is $24,000. Shane will receive a 1099-K from Lyft reporting that income.