Per the IRS, "Form 1099-K is a report of payments you got during the year from:
- Credit, debit, or stored value cards such as gift cards (payment cards)
- Payment apps or online marketplaces (third-party payment networks)
Third-party payment networks are required to file Form 1099-K with the IRS and provide a copy to you when the gross payment amount is more than the threshold amount. Form 1099-K should not report gifts or reimbursement of personal expenses you received from friends and family."
Reporting Threshold
Applications like Cash App, Venmo, PayPal, etc., are required to file a Form 1099-K if you received $20,000 or more using the app during 2025 or had more than 200 transactions. You must report the income on your tax return if you receive a 1099-K for the 2023 tax year. The reporting threshold for 2024 has decreased to $5,000.
You could also receive a 1099-K if you earned income from reselling tickets. Resale sites like Ticketmaster and StubHub must now provide the IRS with the data of all sellers who make more than the reporting threshold.