TC business · IRS Form 1099-KForm 1099-K for transaction coordinators: when card and app payments are reported

Form 1099-K reports payments you received for goods or services through payment cards and through payment apps or online marketplaces (third party settlement organizations). If clients pay you directly by credit, debit or gift card, the card processor sends you a Form 1099-K no matter how many payments or how much. A payment app or online marketplace must send one when the payments you received for goods or services total over $20,000 in more than 200 transactions – though it may send one for less. Copies go to the IRS and to you by January 31. For an agent or brokerage, payments made by card or through a third-party network are reported on Form 1099-K by the payment company and are not reported on Form 1099-MISC or 1099-NEC – so the same fee should not show up on both. Fees paid by check, ACH or wire of $2,000 or more in a year (tax years beginning after 2025) go on the payer's 1099-NEC instead. Whatever forms arrive, all income from your services must be reported on your return; money from friends and family as a gift or repayment of a personal expense is not taxable and should be marked as personal in the app.