1099Ks come from third-party vendors who handle electronic payments of which most common are debit and credit card payments. They are also sent to the various tax agencies to reconcile business records with the tax returns. This would apply to people who use the vendors to accept payment for business, hobby, and personal sales.
Originally this started out several years ago with thresholds of $20,000 in sales and 200 transactions which remained for tax years 2022 & 2023.
Currently, the thresholds are $5,000 for 2024, $2,500 for 2025, and $600 for 2026 and beyond. There is no threshold for number of transactions at this time.
Be sure to bring in all the 1099s of any kind that you receive to include with your tax return. We can reconcile with your profit and loss statement.
