A seller may receive a 1099-K when certain sales and transaction thresholds through third-party settlement organizations (e.g., PayPal, Dwolla, etc.) are met. If you are not based in the United States, do not cash out in USD, or do not meet the threshold requirements set forth below, you may not receive a 1099-K.
Our third-party settlement organizations will mail out a 1099-K to you if your gross total reportable transactions exceed $600 USD for the calendar year. Please note this threshold is a change from prior years.
Effective January 1, 2022, new IRS regulations have significantly changed the reporting thresholds for third-party settlement organizations associated with Form 1099-K from $20,000 USD gross payments and 200 transactions in a calendar year to a threshold of $600 USD in aggregate payments with no minimum transaction requirement.