Did You Receive a 1099-K? Make Sure You Don't Make This Costly Mistake

For some gig workers, freelancers and small business owners, a new kind of IRS form may have arrived alongside other forms they're used to receiving: a 1099-K. And if you're not careful, this form could make it easy to overpay the IRS. If you use a third-party payment service to receive payments, such as PayPal, Venmo or CashApp, those payment processors are now required to issue form 1099-K to you if you earned $5,000 or more in 2024. I'm an IRS-enrolled agent and tax expert who can help you navigate filing this freelance form without accidentally reporting your income twice. Read more: Best Self-Employment Tax Software Why you might receive a 1099-K for the first time A 1099-K form is a relatively new IRS income tax form that freelancers and business owners who earned more than $5,000 through third-party payment platforms in 2024 may receive. The Housing and Economic Recovery Act of 2008, passed in the wake of the great financial crisis, included a new reporting provision for b ... Read full article.