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| # of Forms | 1-20 | 21-150 | 151-500 | 501-1000 | 1000+ |
|---|---|---|---|---|---|
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During the tax year, payments and transactions made through third-party networks, internet platforms, and payment card processors are reported on IRS Form 1099-K.
For each calendar year, payments made in settlement of reportable payment transactions must be submitted on Form 1099-K by a payment settlement entity (PSE).
Payment card companies, payment apps and online marketplaces are required to fill out Form 1099-K and send it to the IRS each year. They must also send a copy to the recipient by January 31.
Effective from the 2024 tax year, the IRS has updated the threshold change in phases to report all 1099-K payments made in a tax year with a minimum reportable gross total of $5000.
This is part of a phase-in to implement the $600 reporting threshold enacted under the American Rescue Plan.
In tax year 2025 (taxes filed in Jan 2026), the $600 threshold is expected to kick-in, meaning many more businesses and freelancers – who previously did not meet the minimum threshold – will receive a Form 1099-K.
Learn more about IRS Announcement 1099-K.
Use this box to report the gross amount of payment card/third-party network payments made during a calendar year.
Box 1b – Card Not Present TransactionsUse this box to report all transactions in which a payment card was not used or if the card number was added by default to the terminal.
Box 2 – Merchant Category CodeUse this box to report the merchant category code, which is typically used for payment card/third-party network transactions.
Box 3 – Number Of Payment TransactionsUse this box to report the number of transactions processed in a calendar year.
Box 4 – Federal Income Tax WithheldUse this box to report the total federal tax withheld
Valid TIN/legal name information is critical for this box.
Use this box to report the gross amount of payment card/third-party network payments you’ve processed in the calendar year.
Boxes 6–8 – State Income Tax WithheldUse this box to report the state and local income tax withholdings
New Form 1099-K Reporting Requirements 2024The IRS requires all third-party payment networks and payment card
entities to follow the new updates as introduced to be effective from the 2024
tax year.
Payment networks and credit card companies are required to report all
third-party payments made to the
participating payee in a calendar year with a minimum reportable gross total of
$600. There is no threshold on the transaction count.
| Filing Type | Due Date |
| Recipient Copy | Friday - January 31, 2025 |
| IRS eFile | Monday - March 31, 2025 |
| IRS Paper Filing | Friday - Feb 28, 2025 |
With Tax1099, you can schedule the date that your forms are transmitted to the IRS. Scheduling your forms gives you time between when we email/USPS your forms to vendors and when we send the forms to the IRS. This is useful because your vendors may have edits to make. You can make those changes in Tax1099 before the scheduled date at no extra charge. We automatically schedule your IRS eFile transmission a week away from when you submit, or by the IRS deadline. You can edit this date to match your preference.
You can easily file your 1099-K forms online with Tax1099’s simplified 3-step eFile process.
Import your payee transaction data within seconds using the available integrations. This will enable you to gather all the necessary data to prepare your filing accurately. At this point, you can opt for Tax1099 API services to skip manual data entry.
Step 2: Verify TIN + Validate Form DataOnce you furnish the data on the 1099-K form, check for relevance and accuracy. Check your own transaction data and compare it with the information reported on Form 1099-K. Edit the forms to correct any incorrect details, including incorrect TINs and the legal names of your payees.
eFile Form 1099-K
Once you’re through with the review process and confident about your reports,
hit the ‘eFile’ submission button to transmit your returns directly to the IRS
within seconds.
And that’s it!
Prepare and eFile your 1099-K returns seamlessly with Tax1099, a digital tax
compliance platform approved by the IRS.
With advanced bulk eFiling solutions, preparing and managing your 1099-K filings
would be a breeze. Further, our Tax1099 API solutions enable you to prepare, file,
and manage your
1099-k returns effortlessly.
Tax1099’s real-time TIN Matching system helps
you verify millions of payee TINs within seconds, preventing IRS TIN discrepancies
and incorrect TIN penalties.
This also eliminates the risk of reporting inaccurate vendor data.
Verify your payee TINs, prepare your 1099-K forms quickly, and eFile thousands of
forms at once with Tax1099 – a trusted choice for 150,000 businesses.
Schedule a demo today to explore what Tax1099 can unfold for your business. Customize Tax1099 to meet your deadline-sensitive goals.
Prepare your 1099-K reports accurately and eFile with confidence
| # of Forms | 1-20 | 21-150 | 151-500 | 501-1000 | 1000+ |
|---|---|---|---|---|---|
| Pricing Tier | $ 2.90 | $ 2.19 | $ 1.25 | $ 0.65 | Get a Quote |
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The CFSFP Combined Federal State Filing Program allows parts of your federal eFile to be transmitted to the state at no extra charge. Non-participating states must receive a direct file. Learn more about state filing here.
