What is Form 1099-K?
Form 1099-K reports payments you received through cards and platforms like PayPal, Venmo (business) and online marketplaces. Reporting thresholds have been changing, so more sellers and gig workers now receive one.
The 1099-K reports gross payment volume, not profit — so the figure can look alarmingly high. It includes sales before platform fees, refunds, shipping, and sales tax. Your job is to report the gross on Schedule C and then deduct the fees, refunds, and costs to get to real taxable income.
Who files it
Payment processors and platforms issue it to sellers and gig workers who cross the reporting threshold.
When it's due
Form 1099-K is generally due January 31. Deadlines can move for weekends and holidays, so confirm the exact date for the current year on IRS.gov.
Key lines and parts
Here's what you'll actually fill in on Form 1099-K:
- Box 1a — gross payments
- Box 1b — card-not-present transactions
- Box 3 — number of transactions
- Boxes 5a–5l — monthly breakdown
How to file
You reconcile the 1099-K total with your own records and report the business income on Schedule C. A 1099-K isn't proof everything on it is taxable — refunds and personal transfers can appear too.