Vision Accounting

$600 1099-K Threshold FAQs (3/3)

Here is an answer to one of the most common questions about the new over $600 1099-K rule.

Why have I never gotten 1099-K forms from payment processors before?

Prior to tax year 2022, the IRS only required third-party payment processors to file Form 1099-K for individuals and businesses that received over $20,000 in gross payments in a year. As a result of the dramatic lowering of this threshold, many people who have never received a 1099-K form will get one for 2022.

$600 1099-K Threshold FAQs (1/3)

Here is an answer to one of the most common questions about this new over $600 1099-K rule.

Do payments from friends and families (splitting a check, gifts, etc.) count toward the form 1099-K filing threshold?

No, only payments for goods and services count toward the $600 limit. If you receive a Form 1099-K from a payment processor that includes non-business payments like gifts or settling up with friends, contact the processor and ask for a corrected form before you file your tax return. To help prevent this issue, remind friends and family to check the “Sending money to friends and family” option when sending payments.