Form 1099-K: Payment Card and Third Party Network Transactions
Report payment card transactions and third-party network payments that meet reporting thresholds.
Filing Deadline
January 31 (to payee and IRS)
2024 Threshold
$5,000 in aggregate payments
Payers
Payment processors, TPSOs
Overview
Form 1099-K is used by payment settlement entities (PSEs) including credit card companies, third-party payment networks (like PayPal, Venmo, Square), and other payment processors to report the gross amount of payment card transactions and third-party network transactions.
The IRS uses this form to track business income and ensure proper reporting. The reporting threshold has changed over the years - for 2024, the threshold is $5,000 in aggregate payments (transitioning from previous thresholds).
Who Must File
Required Filers
- •Payment card processors (credit card companies)
- •Third-party settlement organizations (PayPal, Venmo, Square, Stripe)
- •Processed $5,000+ in payments to a payee in 2024
- •Payment processors for goods and services transactions
Exceptions & Notes
- ✕Personal transactions (friends/family payments)
- ✕Reimbursements
- ✕Below the annual threshold
Form Structure & Instructions
Here's what information is required in each section:
Transaction Summary
Aggregate payment information for the year
Important Filing Notes
Changing Thresholds
The threshold was $20,000 and 200 transactions, changed to $600 for 2022 (delayed), and is now $5,000 for 2024 with a planned reduction to $600 in future years.
Gross Amount Reporting
Box 1a shows gross payment amounts before any fees, refunds, or chargebacks. Your actual net income will be lower after these adjustments.
Personal vs. Business
Only payments for goods or services should be reported. Personal payments (gifts, reimbursements) between friends/family should not trigger 1099-K.
Simplify Payment Processing Reporting
Let Plain Dot handle your Form 1099-K compliance with automated transaction tracking and threshold monitoring.
Get Started Today