Did you get a Form 1099-K (Payment Card and Third Party Network Transactions) in the mail? You should have received one from each platform on which you sold more than $5,000 in goods or services, regardless of the number of transactions, in 2024. Form 1099-K is new for many taxpayers because the previous threshold for receiving it was annual receipts of over $20,000 and 200 transactions. The threshold is scheduled to fall further for 2025 sales (over $2,500) and 2026 sales (over $600) as part of a gradual phase-in period. These changes are intended to improve the accuracy of reported income. Be sure to provide us with any 1099-Ks you receive so we can use them to prepare your tax return.
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