New Reporting Threshold for IRS Form 1099-K
For individuals receiving payments through third-party platforms (like Venmo or PayPal) for goods or services, the 1099-K form now has a reduced reporting threshold. In 2024, third-party settlement organizations must issue a 1099-K if total transactions exceed $5,000, regardless of the number of transactions. This is a reduction from the previous thresholds of $20,000 and 200 transactions. The updated threshold aims to increase the accuracy of income reporting but doesn't affect payments for personal transactions like reimbursements or gifts, which are non-taxable
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