1099-K: Reporting Income from Online Marketplaces & Payment Apps

If you sell goods and services and accept payments through online marketplaces, like eBay and Poshmark, or third-party apps, you’ll want to familiarize yourself with the IRS reporting requirements for this income.  

What is a 1099-K Form?  

A 1099-K form is used to report payments received through third-party payment apps or online marketplaces. It helps the IRS track income from these sources to ensure accurate tax reporting. You should receive a Form 1099-K by January 31st if you: 

• Accepted a credit, debit, or gift card as payment for a good or service. The form will be sent by your payment card processor.  
• Used an online marketplace or payment app to accept payment for a good or service. However, these platforms are only required to send a Form 1099-K if you earn over $20,000 through 200 or more transactions. They may still issue you a Form 1099-K for lesser amounts. If you accept payments through multiple platforms, you may get multiple 1099-Ks.  

Freelancers and gig workers who are paid through payment apps may receive a 1099-K from the platform and a separate 1099-NEC from their client—in this case, be sure not to report the same income twice!  

Do I have to report 1099-K income?  

While online marketplaces and payment apps are only required to send Form 1099-K if certain thresholds are met, you must report any income you make through these platforms for goods and services—even if the amount is under the threshold. If you don’t receive a Form 1099-K by mail, check the platform’s instructions to access a digital copy of the form. 

What if I sold a personal item at a loss?  

If you sell personal items (like a used laptop or clothing) for less than what you originally paid, that’s considered a non-taxable transaction—you don’t owe taxes on the sale. However, if you receive a Form 1099-K for these sales, do not ignore it. The IRS also receives a copy, so you should report the amount shown on the form and then offset it by showing your original purchase price, resulting in zero taxable income. This helps prevent IRS notices or audits. 

What if I only use payment apps for personal transactions?  

Personal payments between family and friends are excluded from IRS reporting requirements. For example, if you split the cost of a pizza and your friends reimburse you through a payment app, that transaction is not taxable and does not need to be reported. 

Why did the 1099-K threshold change?  

There have been several reporting threshold changes for Form 1099-K in the past few years. The IRS had introduced a phase-in implementation that would eventually lower the threshold to $600 by 2026. However, the passage of the One Big Beautiful Bill Act halted these efforts. For this reason, the threshold has returned to $20,000 in payments for the 2025 tax year and beyond. 

For more details about official tax forms and documents, visit General Electric Credit Union’s tax documents page. Our members have access to discounts and resources that make tax season easier. Discover how you can save big on tax prep, whether you file online or in-person.