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Online sellers & gig workers

1099-KPayment Card and Third-Party Network Transactions

Reports income from payment processors like PayPal, Venmo, Stripe, Etsy, or Uber when you exceed reporting thresholds.

Who needs to file this form

Payment settlement entities (PayPal, Venmo, Stripe, Square, Etsy, eBay, Uber, etc.) send a 1099-K when your gross payments exceed $20,000 AND you had more than 200 transactions. The One Big Beautiful Bill Act of 2025 set this threshold. Even if you don't receive a 1099-K, all income is taxable.

Key Deadlines

Payment processor must send 1099-K to you

January 31, 2027

File return reporting this income

April 15, 2027

Step-by-Step Filing Guide

1

Review the 1099-K for accuracy

The 1099-K shows gross payments, which may include refunds, returns, and personal transactions. The gross amount may be higher than your actual business income. Document any personal or non-income transactions included in the total.

2

Determine where to report the income

If this is self-employment income: report on Schedule C. If it's from selling personal items at a loss: you may not owe tax, but you should still report and explain the difference. If from investment activity: it may go on Schedule D.

3

Subtract business expenses if self-employed

If this is business income on Schedule C, deduct all ordinary and necessary business expenses: platform fees, shipping costs, supplies, cost of goods sold. The 1099-K reports gross revenue, not profit.

4

Reconcile with other 1099 forms

Income reported on a 1099-K may overlap with a 1099-NEC from the same payer. Don't double-report. If a platform sent both forms, make sure you understand what each covers and report the correct total.

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Tax education only. Based on IRS form instructions and publications. Not tax advice.