A 1099-K form is a transaction record kept by third party payment networks like Venmo and PayPal. Those networks then fill out the form and send a copy to the IRS. An online network is needed in order to file and you will be sent a 1099-K if you have been sent $600 during the year aggregate. Anyone who accepts payments through a third party payment network or from credit cards can receive one. The form will have your social security number or taxpayer identification number on it.

Key Takeaways:

  • An online network is needed in order to file and send a 1099-K form if it transfers $600 minimum during the year.
  • The $600 threshold is aggregate and that means every small amount sent by every person adds up to the amount.
  • You have to report business income on your taxes but make sure not to double report your income.

“Anybody who accepts payments from credit cards or third-party payment networks such as PayPal or Venmo might receive a 1099-K.”

Read more: https://www.nerdwallet.com/article/small-business/irs-form-1099-k