Definition
A form that reports payments you received through card processors and payment apps or online marketplaces for goods and services.
What it means
Form 1099-K, Payment Card and Third Party Network Transactions, is filed by payment settlement entities. Card payments are reported regardless of amount. For third-party settlement organizations, such as payment apps and online marketplaces, a 2025 law restored the reporting threshold of more than $20,000 in gross payments and more than 200 transactions in a year. Some states require 1099-K reporting at lower amounts. Money sent between friends and family for personal reasons, such as splitting a dinner bill, is not taxable and should not be reported as payment for goods or services. Selling personal items at a loss is not taxable income, but you may need to show the sale on your return if you get a form. Business income is taxable whether or not you receive a 1099-K.
Example
An online seller who receives $24,000 from 250 sales through a marketplace in 2026 will generally get a 1099-K, while a seller with $15,000 from 300 sales generally will not under the federal threshold.
Illustrative numbers only. Your situation will differ.