IRS Form 1099-K, Payment Card and Third Party Network Transactions, is an information return that reports payments from payment apps or online marketplaces (also known as third-party settlement organizations). These include apps such as Paypal, Venmo and eBay. For 2024, the reporting threshold is $5,000. In 2025, the threshold is scheduled to be reduced to only $600. The House Ways and Means Committee has advanced a bill, the Saving Gig Economy Taxpayers Act, to the House floor for a vote. The bill would repeal the $600 threshold and return it to the previous threshold of $20,000 on over 200 transactions. Contact us if you have questions regarding your Form 1099-K reporting requirements.
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