It doesn't include adjustments for fees, credits, refunds, shipping, cash equivalents or discounts. The gross payment amount (Box 1a) on Form 1099-K reports the total payments you received. Review the information on the Form 1099-K to make sure it's correct. Here's what to do if you receive a Form 1099-K: Check the Information on the Form Take these steps if you receive a Form 1099-K in error. These payments aren't taxable income.īe sure to note these types of payments as non-business when possible in the payment apps. For example: Sharing the cost of a car ride or meal, receiving money for birthday or holiday gifts or getting repaid by a roommate for a household bill. Money you received from friends and family as a gift or reimbursement of a personal expense should not be reported on a Form 1099-K. Find more information on the change in reporting requirements.īack to top What Shouldn't Be Reported on Form 1099-K The reporting threshold for third party settlement organizations, including payment apps and online marketplaces, was lowered to $600 by the American Rescue Plan Act of 2021. There are no changes to what counts as income or how tax is calculated. The $600 reporting threshold started with tax year 2023. Payment apps and online marketplaces are required to file a Form 1099-K if the gross payments to you for goods and services are over $600. They are not payments for goods or services. Gifts or reimbursement of personal expenses from friends and family should not be reported on Form 1099-K.
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