The 1099-K threshold is $20,000 and 200, not $600
Guides that still say $600 are out of date. Here is the wording and where it comes from.
| Date | What the source says | Source |
|---|---|---|
| 23 October 2025 | The IRS announces that the One, Big, Beautiful Bill "retroactively reinstated the reporting threshold in effect prior to" the 2021 law, so marketplaces need not file "unless the gross amount of reportable payment transactions to a payee exceeds $20,000 and the number of transactions exceeds 200". | IRS news release IR-2025-107 |
| 2025 sales | "the threshold for the 2025 tax reporting season will be $20,000 and 200 sales" | Etsy Help |
| Read 10 November 2026 | Under the heading "Exception for de minimis payments", the instructions list two conditions for the calendar year, and a third party settlement organization reports only when both hold. The first reads "The gross amount of total reportable payment transactions exceeds $20,000, and". The second reads "The total number of such transactions exceeds 200." | IRS, Instructions for Form 1099-K (revision 12/2026 as shown on the page) |
What this does not change
- Some states set lower lines. See the state table.
- The IRS notes: "You may receive a Form 1099-K even when total payments or transactions are less than the reporting threshold."
- The threshold decides who gets a form. It does not decide what is taxable. That question is outside this site.
A third party settlement organization is the IRS term for a marketplace or payment app that pays sellers on behalf of buyers.
Sources, read 10 November 2026: IRS news release IR-2025-107, 23 October 2025; IRS, Instructions for Form 1099-K (revision 12/2026 as shown on the page); IRS, Understanding your Form 1099-K (page updated 28 October 2026); Etsy Help, What Do I Need to Know About My 1099-K Tax Form?.
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