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 $20,000. Form 1099-K should not report gifts or reimbursement of personal expenses you received from friends and family."
$20,000 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 2023 or had more than 200 transactions. If you receive a 1099-K for the 2023 tax year, you are required to report the income on your tax return.
You could also receive a 1099-K if you earned income from reselling tickets. Resale sites like Ticketmaster and StubHub are now required to hand over the data of all sellers who make more than $20,000 to the IRS.