Help for Clients Who Received a Form 1099-K in 2024

IRS reports that misinformation continues to circulate about why taxpayers may or may not have received a Form 1099-K, Payment Card and Third Party Network Transactions, in 2024. IRS is asking payroll professionals to help inform their clients about the facts.
 
Last fall, IRS announced a delay for the new $600 reporting threshold for payments that businesses or individuals received through certain payment apps, such as PayPal and Venmo, or through online marketplaces.
 
However, if a taxpayer sold goods or services and received payment through one of those platforms in 2023, they still could have received a Form 1099-K even if their transactions were below the 2023 threshold.
 
Remind your clients that just because a payment is reported on a Form 1099-K, that does not mean it’s taxable. Taxpayers should review the form, check to see that the amount is correct, and determine if there are any deductible expenses associated with the payment that they may be able to claim. Learn more here, including what to do about a Form 1099-K received in error.