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.
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 2023, 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 2023, their gross income from driving for Lyft is $24,000. Shane will receive a 1099-K from Lyft reporting that income.