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).
• Received payment of at least $20,000 and 200 transactions made through third-party network transactions (PayPal, Cash App, Venmo, and other
  third-party networks).

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 payment is received through payment apps and an online marketplace of at least $20,000 with 200 transactions during the year. 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 new threshold for Form 1099-K remains at $20,000 with a 200 transaction limit for the year 2023, as the IRS has postponed the anticipated change to a $600 threshold. This delay designates 2023 as a transition period, maintaining the existing requirements for reporting. Learn More

When is the deadline to File 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

  Want to know how to complete Form 1099-K? Follow these step-by-step Form 1099-K Instructions to guide you through the process.

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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.