What This Means for You – 1099-K Reporting in 2025
If you're a small business owner, independent contractor, online seller, or gig worker, the updated Form 1099-K threshold may affect what tax forms you receive—and how you report income.
Will I Get a Form 1099-K in 2025?
You will only receive Form 1099-K if you meet both of the following:
- You've received over $20,000 in payments for goods or services
- You've had more than 200 transactions through platforms like PayPal, Venmo, Square, Stripe, eBay, Etsy, or other online processors
If you do not meet both requirements, the platform won’t issue a 1099-K, but...
Do I Still Need to Report My Income?
Yes. The IRS requires you to report all taxable income, whether or not you receive a Form 1099-K.
Even casual side gigs or one-time online sales may still be taxable. It’s your responsibility to keep good records and accurately report income from:
- Freelance work
- Selling goods or handmade items online
- Renting out property or providing services
- Digital tips, commissions, or platform bonuses
What Should I Do Now?
- Track your payments from third-party platforms throughout the year
- Maintain separate bank accounts for personal vs. business income
- Use tools like QuickBooks to simplify bookkeeping
Looking Ahead
- This threshold rollback is permanent under current law
- Starting in 2026, other forms like 1099-MISC and 1099-NEC will use a new $2,000 reporting threshold, indexed for inflation beginning in 2027