1099-K Threshold for 2024

In Notice 2024-85, the IRS confirmed that a $5,000 threshold will apply for the 2024 tax year for Form 1099-K, Payment Card and Third-Party Transactions.

Third-party payment platforms will be required to file Form 1099-K for any account if the total amount of all transactions in the account is more than $5,000 during 2024.

In the same notice, the IRS also indicated that the threshold will be $2,500 for the 2025 tax year and $600 for the 2026 and later tax years.

The new thresholds are substantially lower than the threshold that applied for the 2023 and earlier tax years, when third-party payment platforms were required to file Form 1099-K for any account when more than 200 transactions were processed and the total amount of such transactions was more than $20,000 for the year.

In addition to the lower dollar threshold, beginning with the 2024 tax year, the threshold for the number of transactions is eliminated. As a result, Forms 1099-K are required when the dollar total of all transactions exceeds the threshold, regardless of the number of transactions that occur during the year.

We will discuss important strategies and logistics for reporting Forms 1099-K on income tax returns as part of our seminars in December and January.

Are you registered for one of our upcoming seminars in December and January? If you are not already registered, register here so you’ll be fully prepared!