Glossary · Content creators
1099-K
Form 1099-K is the IRS form that card processors, payment apps and online marketplaces file to report the payments they settled for you.
Updated · Sources
Who must file a 1099-K, for 2026
- $20,000
- in payments for goods or services in a year is the threshold a payment app or marketplace must pass before it files a 1099-K.
- 200
- transactions in the same year is the second test. The app files only when you pass both.
- Any
- amount of card payments you accept is reported by the card processor.
Neither the $20,000 nor the 200 rises with inflation.
The One Big Beautiful Bill Act restored the payment app test as if the 2021 cut to $600 had never taken effect. The $5,000 and $2,500 transition thresholds the IRS set for 2024 and 2025 no longer apply either. A payment app may still send you a 1099-K below the thresholds.
Box 1a reports the gross amount, before any fees, refunds or shipping are subtracted. Boxes 5a to 5l split that gross by month, which helps when you match the form to your own records. On your return, refunds and fees come off, so the income you are taxed on can be lower than the form’s total.
New for 2026, box 1c reports the cash tips within the gross, with the code for your tipped occupation in box 1d. Box 4 shows any backup withholding taken from your payouts.
The tests set only the payer’s duty to file. Income from selling goods or services is taxable whether or not a 1099-K arrives. Money from friends and family, such as a gift or a repayment, is not income, and it should not appear on the form.
Sources
- 26 U.S.C. § 6050W, Returns relating to payments made in settlement of payment card and third party network transactions
- Public Law 119-21 (One Big Beautiful Bill Act), § 70432
- IRS, Instructions for Form 1099-K (Rev. December 2026)
- IRS, Understanding your Form 1099-K
Reviewed and updated September 2026. General information, not advice for your situation.