Confused by Form 1099-K? Check out IRS’ updated FAQs

February 10, 2024

1099K-reporting_AdobeStock_478818800_Editorial_Use_Only

Last week, I finally got all the documents I need to file my 2023 tax return. As an independent contractor, the bulk of my income tax statements were 1099-NEC forms.

But some folks are getting 1099-Ks. And these tax statements still are causing confusion.

Form 1099-K has become more common with the growth of the gig workforce, and the delivery of products and services through online apps and marketplaces, such as PayPal, Venmo, CashApp, eBay, Etsy, Uber, Lyft, and Airbnb.

Old form, new amounts: The forms are not new, but the amount of earnings that trigger their issuance has changed. Repeatedly over the last few years.

1099-K Form

See more tax forms and more about them at Tax Forms 2024.

The most recent modification came in late November 2023 when the Internal Revenue Service delayed (again) the 1099-K issuance requirement under the new $600 amount trigger. The tax agency also announced that when the forms are issued in 2025 for the 2024 tax year, the reporting amount will be on payments of $5,000 or more.

For the 2023 tax year, whose filing most of us are working on right now, the IRS move means that 1099-Ks don't have to be issued unless the recipient last year met the old reporting threshold of more than $20,000 earned and more than 200 transactions.

But some operations went ahead this year and sent out 1099-K forms for lesser amounts and fewer transactions.

Updated IRS 1099-K FAQs: Old dollar amounts. New dollar amounts. New dates. Questions about non-business transactions.

It's easy to see why individual who are getting these forms — and, yes, even with the changes in the rules about who must send to them to taxpayers and when, some companies have sent out 1099-K forms — are still (and even more) confused.

So in an effort to clarify some of the concerns, the IRS last week updated its Form 1099-K online frequently asked questions page.

The revised FAQs for both individual taxpayers and companies that issue the statements contain substantial changes within each of the following sections —

  • General Information
  • What to Do If You Receive a Form 1099-K
  • Common Situations
  • Third-Party Filers of Form 1099-K
  • Should My Organization Be Preparing, Filing and Furnishing Form 1099-K?

This IRS update of its Form 1099-K frequently asked questions page on IRS.gov, as well as the Fact Sheet PDF version, earns this weekend's Saturday Shout Out.

If you had earnings that at some level might now or one day be subject to 1099-K reporting, it's worth checking out.

More 1099-K changes on the way, maybe: And stay tuned.

The Tax Relief for American Families and Workers Act of 2024 (H.R. 7024) that passed the House of Representatives on Jan. 31 by a surprisingly overwhelming and bipartisan 357-70 vote would change the 1099-K rules again.

The tax bill, which likely won't be considered by the Senate until March, would raise the 1099-K reporting threshold from $600 to $1,000 for post payments made in 2024 and later.

You also might find these items of interest:

 

Advertisements

🌟 Search Amazon Electronics 🌟
The text link above is an affiliate ad. If you click through and then buy a product, I receive a commission.

 

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
6 tax moves to consider this June

June 3, 2026

Definitely take a break this June. But taxes don’t take vacations. So, you also should…

Read More
Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments