What is a Form 1099-K?

Modified on Wed, 24 Jan 2024 at 11:59 PM

The Form 1099-K reports payment transactions, such as credit card sales or third party transactions from networks such as PayPal, Venmo, Zelle, and CashApp. The idea behind a 1099-K is to track business income for goods or services sold where the payments were reported through an app or online platform. 

  • For 2023, a 1099-K will be issued to those who received gross payments for goods or services that exceed $20,000 through the online platforms noted above, among others, from over 200 transactions.

Note that not all of the transactions on your 1099-K may be taxable. For example: if a 1099-K is issued that includes the amount your roommate reimburses you for their half of rent, this would not be taxable.

 

The IRS advises taxpayers using online payment apps for non-taxable items (such as your roommate sending you money for their half of rent) to note these types of payments as non-business in the payment apps when possible. 

 

If non-taxable items are included on your 1099-K, the IRS has more information here for how to either get this form corrected or file with that information (if the issuer is unable to correct it).

 

Beem supports 1099-K business income filed on a Schedule C, the reporting of 1099-K non-business income, and the adjustment for 1099-K nontaxable income.

 

For coverage details and other important legal information about Filer, you can read more here.

 

Additional Resources:

 

This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.

 

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