You’ll receive a 1099-K form from each of the platforms that you use when you surpass the $600 threshold.Īt the end of the year, the third-party network fills out a 1099-K form for the users that meet a threshold of transactions. When you receive a copy of your 1099-K form, you’ll see an aggregate total of money received through the payment network for the tax year.Īs an example, if you got $100 from 10 different sources throughout the year, your 1099-K will report that you received $1,000 for the tax year. PayPal and Venmo are common examples of third-party networks. And depending on how big your payment is and what it’s for, you may have to file it with your taxes. A financial advisor can help lower your tax liability with a tax planning strategy.Ī 1099-K form is a record of payments from third-party networks. ![]() This form reports transactions from third-party payment networks. If you use PayPal, Venmo and other third-party payment networks, then you might get a 1099-K form from the IRS.
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