E-File Form 1099-K Online for
2023 Tax Year

What is IRS Form 1099-K?

IRS Form 1099-K is used by the Payment Settlement Entities (PSEs) to report the settlement of reportable payment transactions made through payment card transactions or third-party network transactions for each calendar year.

The business or individual will receive Form 1099-K from each payment settlement entity used in the prior calendar year if

• Payment is received through payment card transactions (debit and credit card).
• In settlement of payments made through third-party network transactions (PayPal, Cash App, Venmo, and other third-party networks), with a minimum threshold as follows:
  • For returns prior to the calendar year 2023, the minimum threshold was $20,000 with 200 transactions.
  • For returns after the calendar year 2023, the minimum threshold for reporting is $600, regardless of the number of transactions.

Note: The transaction doesn’t include any personal payment, such as payment made to families and friends.

Who Must File 1099-K?

Form 1099-K should be filed by payment settlement entities to report online payments received to the payee under the following circumstances.

• If any payment is received through payment cards such as Debit Cards, Credit Cards, or Stored value cards.
• If $600 or more, payment is received through payment apps and online marketplace. The payment includes any personal item sold, renting property, or services provided through the following platforms
  • Online payment apps such as PayPal, Venmo, and Cash app.
  • Auction sites
  • Ticket selling platform
  • Car rental platform
  • Craft or maker marketplace
  • Real estate marketplace
  • Crowdfunding platform
  • Freelancer marketplace.

What is the new threshold of Form 1099-K?

The IRS has released the new changes in Form 1099-K for the 2023 tax year; the threshold for reporting payment from third-party network transactions has been reduced from $20,000 to $600, regardless of the total number of transactions. Learn More

When is the deadline to file Form 1099-K?

The Form 1099-K must be furnished to recipients before January 31, 2024, and a copy of the form should be paper filed with the IRS by February 28, 2024. The e-filing deadline for Form 1099-K is April 1, 2024, for the 2023 tax year.

Note: If the deadline falls on a weekend or federal holiday, the deadline moves to the next business day.

What are the Boxes in Form 1099-K?

Form 1099-K comprised of 8 Boxes. You have to enter the required information in each box.

Boxes for Filer’s Information

1. Enter Filer’s information like Name, Address, City or Town, State, Postal Code, and Phone Number

2. Enter Filer’s TIN (EIN/SSN)

3. Filer Type (PSE or EPF)

4. Transactions reported (Payment Card or Third-party network)

Boxes for Payee Information

1. Enter Payee TIN

2. Enter Payee Name

3. Enter Payee Address

4. Enter Payee City, State, Country, and ZIP code

Boxes for Debt information

• Box 1a: Gross Payment Card/Third Party Network Transactions

• Box 1b: Card Not Present Transaction

• Box 2: Merchant Category Code (MCC)

• Box 3: Number of Payment Transactions

• Box 4: Federal Income Tax Withheld

• Box 5a to 5I: Total reportable payment transactions for each month

• Box 6 to 8: State Information

  Visit Want to know how to complete Form 1099-K? Here are the step by step Form 1099-K Instructions.

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What is the difference between Form 1099 K, NEC and MISC?

Form 1099-K is used to report any payments made through payment cards and third-party networks, while Form 1099-MISC is typically used for miscellaneous payments made through cash or check. Form 1099-NEC, on the other hand, is specifically used to report non-employee compensation made through cash or check. Learn more in detail about Form 1099-K vs NEC vs MISC..