A 1099-K is an informational return to report annual gross payments when your clients pay you directly by credit or debit cards using a payment platform such as PayPal, Venmo, CashApp, or Square.
This includes payments for any:
- Goods you sell, including personal items such as clothing or furniture
- Services you provide
- Property you rent
The gross amount reported on Form 1099-K should not include:
- Adjustments for credits
- Refunded amounts
- Gifts
- Personal expenses, such as reimbursements received from friends and family.
Who receives a 1099-K?
For 2025 and beyond, in most states, only accounts meeting the following criteria qualify for a Form 1099-K and must be reported to the IRS by your provider:
- More than $20,000 in gross sales from goods or services in the calendar year and
- More than 200 transactions in the calendar year
If you did not meet the criteria your payment processor won't issue a 1099-K. In that case, you can mark the document request for year end bookkeeping as "Not Relevant" and add note.
When is a 1099-K issued?
Payment platforms are required to file Form 1099-K with the IRS and provide a copy to you by January 31. If you accept payments on multiple platforms, you may receive multiple 1099-Ks.
The amount reported on a 1099-K is considered taxable income and must be reported on your tax return. The 1099-K form does not include fees by the credit card company. However, the total of these fees can be expensed through Year End Documents: Merchant Fees Report.
Where can I download my 1099-K?
We've gathered instructions on where to download Form 1099-K for common apps used by Heard practitioners. If you are unable to locate the form, please contact the payment processor.
- How to download 1099-K from PayPal
- How to download 1099-K from Venmo
- How to download 1099-K from Cash App