1099-K, Payment Card Transactions

This form reports payments made through credit cards and apps such as Venmo, PayPal, and Shopify. Companies like Uber and Lyft also issue 1099-K’s. 

For 2023 and prior years, third-party payment platforms like PayPal are only required to send out Forms 1099-K to taxpayers who receive over $20,000 and have over 200 transactions.

For tax year 2024, the IRS plans for a threshold of $5,000 to phase in reporting requirements.

Because of this, you should consider using separate accounts for business and personal to make it easier to track what transactions are for business and what are personal. You can enter your 1099-K in the filing flow under Income > Freelance income. 

Breaking down the boxes:

  • Box 1a: Gross payment volume for all payment transactions.
  • Box 1b: Card-not-present transactions.
  • Box 2: Merchant category code.
  • Box 3: Number of payment transactions.
  • Box 4: Federal income tax withheld.
  • Boxes 5a-5l: Gross payments by month.
  • Box 6: State tax withheld.
  • Box 7: Merchant's name, address, and account number.
  • Boxes 8-11: State information.
  • PSE’s name and telephone number: Who you contact if you notice a mistake on your 1099-K.