You should receive a Form 1099-K if you sold a good or provided a service and were paid a gross amount more than the reporting threshold through a payment app or an online marketplace or accepted a payment from a payment card. You may have a tax obligation if you had a gain on the sale or received payment for services you provided. Form 1099-K is an information return that popular payment apps and online marketplaces provide when you use them for selling goods or providing a service. The IRS has recently updated their FAQ’s regarding these type transactions (see below link).
Common types of questions addressed by the FAQ’s include –
“Will my child get a Form 1099-K if I send them money using payment apps?”
“If I have a seasonal craft business and accept payment cards, or accept payments through payment apps or online marketplaces, will I receive a Form 1099-K?”
“Who is responsible for reporting payment card transactions?”
Access these FAQ’s and responses using the below link –
