New Form 1099-K Threshold for the 2022 Tax Year

Updated on January 26, 2023 - 15.00 AM by Admin, TaxBandits

Form 1099-K is an IRS Form used to report the payment transactions made through the payment settlement entities (PSEs) or third-party settlement organizations (TPSOs).

Payment Settlement Entities are business organizations that facilitate credit and debit card transactions and settle the payment between two parties. They are not generally banks.

In this article, we cover the following topics:

1. Overview of the Form 1099-K

The IRS Form 1099-K should be filed with the IRS if Payment Settlement Entities (PSEs) made transactions of more than $600 for each payee during the calendar year on behalf of the payee’s clients. PSEs include credit cards, debit cards, banks, PayPal, Uber, Lyft, and other third-party payers.

2. What are the Form 1099-K Changes for 2022 Tax Year?

Until the 2021 tax year, TPSOs were expected to file Form 1099-K if they made transactions of over $20,000 or if there were more than 200 individual transactions. Under the American Rescue Plan Act, new regulations were put in place for PSEs and TPSOs. These new reporting requirements are much more strict and will result in these entities needing to file many more Forms 1099-K in the upcoming tax year.

From the 2022 tax year forward, TPSOs are expected to file Form 1099-K if they made a total of payments exceeding $600 regardless of any number of transactions.

Changes 2021 Tax Year 2022 Tax Year
Threshold limit $20,000 $600
Transactions 200 Any Number of Transactions

3. When is the Deadline to file Form 1099-K for the 2022 tax year?

The Form 1099-K Deadline is given below:

Recipient copy Deadline January 31, 2023
E-filing Deadline March 31, 2023
Paper filing Deadline February 28, 2023

4. How to file Form 1099-K for 2022?

E-filing is the easiest way to report 1099-K payments to the IRS. Filing paper forms is a longer and less efficient process. Plus, if you are required to file more than 250 tax Forms with the IRS, your business is required to e-file regardless. TaxBandits helps you e-file Form 1099-K in just a few simple steps.

  • Enter the Form information
  • Review the Form information
  • Transmit the Form to the IRS
  • Send recipient/payee copies through postal mailing or online access.

Why wait? Get started with TaxBandits today to e-file Form 1099-K and get the filing status in minutes. Pricing starts at $0.80/Form.

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