TaxBandits Knowledge Base

What is the new threshold for reporting IRS Form 1099-K for tax year 2024?

For the 2024 tax year, the payment threshold to file Form 1099-K is $5000, regardless of number of transactions.

Until the 2023 tax year, the threshold for Form 1099-K was at $20,000 in total payments and 200 transactions per payee. However, starting in the 2024 tax year, the IRS will use a phased approach, requiring reporting only for payments over $5,000, with no penalties for transactions below this amount.

In 2025, the threshold will decrease to $2,500, and in 2026, the reporting threshold will drop to $600 with no minimum number of transactions required.