Form 1099-K threshold for 2026: $20,000 and 200 transactions

Few tax forms have changed direction as often as Form 1099-K. For 2026, the rule is simpler than it has been for years: a payment app or online marketplace sends you a federal 1099-K only if you received more than $20,000 across more than 200 transactions in the calendar year.

What is Form 1099-K?

Form 1099-K reports payments you received through payment card networks and third-party payment networks. The platform sends a copy to you and to the IRS. It shows gross amounts, before fees, refunds or shipping, so it rarely matches your profit.

There are two kinds of filer:

What changed, and when?

The American Rescue Plan Act of 2021 lowered the threshold to $600 with no transaction count. The IRS delayed it repeatedly. The One Big Beautiful Bill Act, signed on 4 July 2025, reversed the change and restored the $20,000 and 200-transaction test, retroactively. The IRS has published updated FAQs.

Why might you still get a 1099-K below $20,000?

1. Card payments. If a merchant acquirer processes your card sales, it reports them with no minimum.
2. State rules. Several states require platforms to report at lower amounts, some as low as $600.
3. Platform choice. A platform can send a form even when not required.

Does the threshold change what I owe?

No. The threshold decides whether a platform has to report. It does not change what is taxable. A business with $15,000 of sales through a marketplace has $15,000 of gross receipts to report, form or no form.

How should you reconcile a 1099-K?

1. Compare the gross amount with your sales records for the same platform.
2. Account for refunds, fees and shipping charges, which the 1099-K includes in the gross figure.
3. Remove personal payments if any went through the same account, such as a friend repaying dinner. The IRS has guidance on reporting these.
4. Keep the platform's reports as evidence.

Mixing business and personal payments on one app is the most common reason 1099-K figures do not reconcile. A separate business account and business profile solves most of it.

What about non-US sellers?

A seller who is not a US person and gives the platform a valid W-8 form is generally not issued a 1099-K. See W-8BEN vs W-8BEN-E. A US LLC owned by a non-resident is a US entity and can receive one. See Form 1099-NEC changes for the contractor side.

Where Rivet fits

Rivet is a business account for registered companies, not a marketplace, so it does not issue 1099-Ks. Companies use their USD account details to receive marketplace and platform payouts in the company's name, which keeps those receipts separate from anything personal.