1099-K threshold 2026

Payment apps and online marketplaces must file Form 1099-K when a payee's gross payments for goods or services exceed $20,000 and there are more than 200 transactions in the year. Payment card transactions have no minimum. They may also send a 1099-K for lower amounts, and some states set lower thresholds.

Why it matters if you pay contractors

If you pay a contractor by card or through a payment app, the processor reports it, and that amount stays out of your 1099-NEC total. Pay the same contractor by check and it counts toward your $2,000 1099-NEC threshold.

Check a payment.

• IRS: Form 1099-K FAQs
• IRS: Understanding your Form 1099-K
• IRS Publication 1099 (2026), General Instructions for Certain Information Returns

Data checked 2026-10-30 against the linked irs.gov pages.