What is Form 1099-K?
Definition Form 1099-K reports payments received through payment cards and third-party networks such as payment apps and online marketplaces. The platform issues it to the seller and the IRS once transactions exceed a reporting threshold that has been changing in recent years. The amount reported is gross, before fees and refunds, so it often needs reconciliation.
As reporting thresholds tighten, more clients receive these forms, and reconciling them to actual taxable income prevents overpaying on gross amounts.