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.
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. This will be reflected for the 2022 tax period for returns that are required to be filed in 2023.
Our third-party settlement organizations will mail out a 1099-K to you if your gross total reportable transactions exceed $600 USD for the 2022 calendar year. Please note this threshold is a change from prior years.
For the 2021 calendar year (and years prior) the reporting threshold was $20,000 gross payments and 200 transactions. This threshold is applicable for 1099-ks that relate to tax returns required to be filed by April 18, 2022.