1099-K threshold checker

What is the 1099-K threshold?

According to the IRS, payment apps and online marketplaces (such as Etsy, PayPal or Venmo for goods and services) must send a Form 1099-K when your payments for goods or services through that platform total over $20,000 in more than 200 transactions. They may send one for lower amounts. Card payments you take directly, through a card processor, are reported at any amount. Either way, all business income goes on your tax return.

Platform	Type	Gross payments ($)	Number of payments	Result
				Under the threshold: a 1099-K is not required, but you may still get one
				Under the threshold: a 1099-K is not required, but you may still get one
				Expect a 1099-K (card payments are reported at any amount)

Total gross payments entered	$45000.00
Platforms likely to send a 1099-K	1
Income you report	All of it, with or without a 1099-K

The threshold is applied per platform, not to your combined total. This checker only tells you whether a platform is required to send the form. It does not work out tax. Ask a tax professional how to report your income.

Last verified October 23, 2026 against IRS: Understanding your Form 1099-K, IRS: What to do with Form 1099-K. Fee change tracker · How we verify

Who sends a 1099-K, and when

How you were paid	When a 1099-K is required
Payment app or online marketplace (the IRS calls these third party settlement organizations, or TPSOs): craft and maker marketplaces, payment apps, freelance marketplaces, auction sites	Payments for goods or services through that platform total over $20,000 in more than 200 transactions. The platform may also send one below that.
Customers paying you directly by credit, debit or gift card, through your card processor	At any amount, however few payments you got.
Gifts or repayments from friends and family	Should not be reported on a 1099-K. The IRS says these are not taxable income; mark them as personal in the app where you can.

Issuers send a copy to the IRS and to you by January 31. If you sell on several platforms, each one applies the threshold separately, so you can get more than one 1099-K, or none, for the same year.

Worked example

The checker starts with an example seller. Etsy: $14,000 from 520 orders. That is more than 200 transactions but not over $20,000, so Etsy is not required to send a 1099-K. PayPal goods and services: $23,000 from 150 payments. That is over $20,000 but not more than 200 transactions, so again no form is required. A Square card reader: $8,000. Square is processing card payments taken directly, so the IRS says a 1099-K is sent at any amount. The seller still reports all $45,000 of sales as income, whether or not a form arrives.

Why the 1099-K amount is not your income

Box 1a on Form 1099-K shows the gross amount of payments. The IRS says it is not adjusted for fees, credits, refunds, shipping, cash equivalents or discounts. That is why your books matter: a seller whose 1099-K shows $25,000 may have paid thousands in platform fees, refunds and shipping. Keep platform reports, merchant statements and your own sales and expense records so the numbers you report can be supported.

If the form is wrong

If it includes personal payments, belongs to someone else or duplicates another form, contact the issuer (the "Filer" at the top left of the form) and ask for a corrected form.
The IRS says it can't correct a 1099-K for you, and that you shouldn't wait to file if a corrected form doesn't arrive.

How you report the form depends on your situation (sole proprietor, partnership, corporation, personal items sold). The IRS page linked above walks through each case. Ask a tax professional which applies to you.

Questions

What is the 1099-K threshold for payment apps?

The IRS page we checked says payment apps and online marketplaces must report when payments total over $20,000 in more than 200 transactions. If another page quotes a different threshold, check the IRS page linked here and the date it was last verified.

Do I have to report income if I don't get a 1099-K?

Yes. The IRS says that whether or not you receive a Form 1099-K, you must report all income from selling goods or providing services on your tax return.

Does the threshold apply to all my platforms combined?

No. Each payment app or marketplace checks the payments it processed for you. You could earn more than $20,000 in total and get no 1099-K if no single platform crosses both limits.

Why did I get a 1099-K below the threshold?

The IRS says platforms may send a Form 1099-K with lower amounts or fewer transactions. Card processors report direct card payments at any amount.

Will Etsy send me a 1099-K?

Etsy is an online marketplace, so the TPSO rule applies: it is required to send one if your payments for goods through Etsy total over $20,000 in more than 200 transactions, and it may send one below that. Etsy decides whether to issue one below the threshold.

General information, not tax, legal or accounting advice. Rates change: check the linked official source before you rely on a number. Not yet reviewed by a CPA or EA.