You may have some additional tax forms to look out for this year. I’m referring to the 1099-K.

The IRS wants to keep track of income flowing through third-party networks so Uncle Sam gets his cut. A form 1099-K does that, reporting revenue from payment card transactions and third-party platforms, like PayPal.

You might not have received the form in the past because you didn’t meet the threshold for having one issued or you were receiving money through platforms, like Cash App, where reporting isn’t straightforward because the app is so heavily used for non-taxable, personal transactions.

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But things have changed. There’s a much lower threshold now.

The original plan was if you received over $600 in payments for goods and services in a year, platforms would send you and the IRS a 1099-K. But there were delays and changes.

What Happened in 2024?

For 2024, the IRS delayed the $600 threshold. To receive a 1099-K for the 2024 tax year, you need to have received over $5,000 AND had more than 200 transactions on a platform last year.

If you didn’t meet both of those requirements, most likely, you won’t see a form.

SEE: IRS Delays 1099-K Rules Again: What Creators Need to Know

What About 2025?

The IRS is making another change for 2025. For this year, the threshold has been lowered to $2,500, and it no longer matters how many transactions you have.

Receive $2,500 through a platform, even one lump sum, and that platform has to issue a 1099-K.

Looking Ahead to 2026

As it stands, there will be another threshold reduction next year. In 2026, if you receive over $600 for goods and services, you should expect a 1099-K from the payment platform.

There will be a different form from each platform. And you need to report that money to the IRS when you file your taxes because the companies also send the IRS copies of the form. So, the IRS knows you earned the money even before you file your taxes.

Which Platforms Issue 1099-Ks?

1099-K reporting is required of a range of apps and platforms, including online marketplaces, ticket resale sites, crowdfunding platforms, and ride-hailing apps.

Platforms where your transactions could trigger a 1099-K include:

• Venmo
• Cash App
• PayPal
• Etsy
• eBay
• Facebook Marketplace
• Stripe
• Square

Why Zelle’s different

Zelle is treated different than platforms like Venmo or PayPal because it’s considered a digital transfer service, sending money straight from bank account to bank account, not a third-party payment network for facilitating sales. So Zelle does not report to the IRS.

The company makes clear that reporting taxable revenue received through Zelle to the IRS, is your responsibility.

One more thing

Remember, the 1099-K only applies to payments you receive for goods and services. Non-business payments from friends and family are not taxable, and you shouldn’t receive a 1099-K for those.

To help ensure, you don’t receive unwarranted tax forms, when possible, use indicative notes or memos on platforms to indicate personal transactions.

HAVE MULTIPLE STREAM of REVENUE??

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