IRS Form 1099-K Instructions for the 2026 Tax Year

What is the purpose of Form 1099-K?

Form 1099-K is filed by Payment Settlement Entities (PSEs) and Electronic Payment Facilitators (EPFs) to report payment card transactions and third-party network transactions. You will receive 1099-K Form from payment settlement entities at the end of the year if you have met the following conditions:

• If you receive payments through payment cards, such as debit cards, credit cards, and stored value cards, the payment is reportable regardless of the amount.
• If you receive payments through payment apps and online marketplaces, the payment is reportable only when your total exceeds $20,000 and 200 transactions for the year.
  • Payment Apps like PayPal, Venmo, and Cash App
  • Auction sites
  • Craft and maker marketplace
  • Real estate marketplace
  • Freelance marketplace
  • Crowdfunding platform
  • Ticket exchange or resale site
  • Online marketplace to sell or resale personal items
  • Taxi and Car rental platform

What is the new threshold of Form 1099-K?

For the 2026 tax year, the Form 1099-K threshold for third-party network transactions remains more than $20,000 in payments and more than 200 transactions. The One Big Beautiful Bill Act (OBBBA) restored this threshold permanently and repealed the planned $2,500 and $600 thresholds. Payment card transactions have no minimum threshold.

Line by line Form 1099-K Instructions

Here is a complete overview of each box on Form 1099-K for 2026.

Before getting into the specific fields of Form 1099-K, you will need to enter the payee’s information (name, address, and TIN). You will also need to provide your name, address, and TIN.

• In Box 1a, enter the gross payment card/third party network transactions. This is the total dollar amount of total reportable payment transactions for the payee.
• In Box 1b, enter the gross amount of card-not-present transactions, such as online, phone, or mail-order card payments, included in Box 1a.
  
• In Box 1c, enter the portion of Box 1a that is cash tips. This is a breakout of the Box 1a amount, not an additional payment.
• In Box 1d, enter up to two Treasury Tipped Occupation Codes (TTOCs) for the tipped occupation of the payee. If any tips were received in a nonqualifying occupation, enter 000 as one of the codes.
• In Box 2 enter the four digit merchant code that is used by the credit card industry to identify the payee.
  
• In Box 3, Enter the total number of transactions processed through the payment card or third party network. Do not include the refund transactions.
  
• In Box 4, enter any federal income tax withheld due to the backup withholding rules. Generally, the filer must backup withhold when the payee does not furnish a TIN or furnishes an incorrect TIN.
• In Box 5, in boxes 5a-5l, enter the gross amount of reportable payment transactions for each month of the calendar year.
• In Box 6-8, you can enter applicable state information. In Box 6, enter the state. In Box 7, enter the filer's state identification number, and finally in Box 8, enter the state income tax withheld.
  

When is the deadline to file Form 1099-K for the 2026 Tax Year?

Here is the deadline to file Form 1099-K for the 2026 tax year.

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