Form 1099-K Deadline for the 2024 Tax Year
Updated on September 30, 2024 - 03.00 PM by Admin, TaxBandits
The IRS Form 1099-K is used to report payments processed by payment settlement entities (PSEs). Simply put, if you use a service to process credit or debit card transactions, that service is a payment settlement entity, and the amount of those types of transactions for the year should be reported on Form 1099-K.
This includes reporting income received from electronic payments such as credit cards, debit cards, PayPal, Uber, Lyft, and other third-party payers. This article will take a deeper dive into the deadline of Form 1099-K for the 2024 Tax Year.
Table of Contents
- What is a Form 1099-K?
- What are the Changes to Form 1099-K for 2024 Tax Year?
- When is the deadline to file Form 1099-K for 2024 Tax Year?
- What are the Penalties for Late Filing of Form 1099-K?
- What are the methods to file Form 1099-K for the 2024 tax year?
- Facilitate Automation of 1099-K Using TaxBandits API
- How to e-file Form 1099-K with TaxBandits?
What is a Form 1099-K?
Form 1099-K is an IRS tax form used by payment settlement entities to report online payments under the following conditions:
- Payments made through payment cards (Debit cards, Credit cards, or stored value cards like gift cards).
- Payments of $600 or more made through third-party networks such as payment apps (PayPal, Venmo, Cash app, etc.) or marketplaces, irrespective of the transaction limit.
Why did I receive a Form 1099-K?
You received a 1099-K Form because you must have met any of the following criteria mentioned below.
- You received payments from payment card transactions such as debit, credit, or store-valued cards OR
- The IRS processed at least $20,000 worth of payments and at least 200 transactions for you from third-party payment network transactions in the past calendar year.
If you don’t meet the requirements stated above, you are not required to issued Form 1099-K.
What are the Changes to Form 1099-K for 2024 Tax Year?
The IRS has delayed the new $600 threshold for reporting Form 1099-K. However, for the 2024 tax year, payment apps and online marketplaces must follow the new threshold rule. Payment settlement entities will only send Forms 1099-K to taxpayers who received over $5000, regardless of the number of transactions during the year.
When is the deadline to file Form 1099-K for 2024 Tax Year?
Like other 1099 forms, the 1099-K follows the same deadline. Here is the deadline to file Form 1099-K for the 2024 tax year.
| Filing Type | Due Date |
|---|---|
| Recipient copy Deadline | January 31, 2025 |
| Paper filing Deadline | February 28, 2025 |
| E-filing Deadline | March 31, 2025 |
If any deadlines fall on a weekend or Federal holiday, the deadline automatically moves to the next business day.
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What are the Penalties for Late Filing of Form 1099-K?
If you fail to file Form 1099-K by the deadline, the IRS imposes penalties that vary based on the lateness of your return. Here are the penalties for late filing for the 2024 tax year:
- Filed within 30 days: $60 per form, with a maximum of $664,500 per year ($232,500 for small businesses).
- Filed after 30 days and before August 1: $130 per form, with a maximum of $1,993,500 per year ($664,500 for small businesses).
- Filed after August 1: $330 per form, with a maximum of $3,987,000 per year ($1,329,000 for small businesses).
- Intentional Disregard: $660 per form with no maximum limits.
What are the methods to file Form 1099-K for the 2024 tax year?
Form 1099-K can be filed either by paper filing or e-filing methods. The IRS recommends electronic filing of the 1099-K returns, as this will speed up the processing time of the returns, and the returns will be transmitted to the IRS at a quicker rate!
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How to e-file Form 1099-K with TaxBandits?
E-filing Form 1099-K for the tax year 2024 is easy with TaxBandits!
Here’s the step-by-step process of e-filing Form 1099-K
with TaxBandits
- Enter the Form 1099-K Details
- Review the Form 1099-K Details
- Transmit the Form to the IRS and State
- Distribute Recipient Copy (Postal or Online Access)
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Helpful Resource for Form 1099-K
What is Form 1099-K?
Form 1099-K Instructions
Form 1099-K Changes
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