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Tax & paperwork

Form 1099-K

Also called: 1099 K, payment card form

The IRS form payment processors send when they've handled your card or app transactions above a reporting threshold.

Form 1099-K reports gross payments processed through payment cards or third-party platforms (Venmo, PayPal, Cash App, Stripe). For tax year 2026, the threshold is $2,500 in gross payments, regardless of transaction count. The threshold has been changing year over year — it was originally going to drop to $600 but Congress and the IRS have delayed and adjusted multiple times.

For tipped and gig workers, 1099-K is most relevant if you accept payments through a personal account (Venmo for private gigs), use Square or Stripe for catering work, or receive tips through cashless apps that aren't already issuing you a 1099-NEC.

The number on 1099-K is gross — it does NOT subtract fees, refunds, or chargebacks. You report the gross on your return and deduct fees as business expenses on Schedule C.

Personal payments (splitting dinner, paying a friend back) marked as "Friends and Family" on Venmo or PayPal should not appear on a 1099-K. If they do, contest with the platform.

Example You did private bartending gigs and accepted $4,200 in payments through Venmo for Business. Venmo issues you a 1099-K with $4,200 gross. Their 1.9% fee ($79.80) is a deductible business expense.