The platform you work with is required to file and provide you with a 1099 tax form, if you meet the following thresholds for the calendar year.
The federal thresholds for receiving a 1099 tax form differ per form type:
1099-K: > $600* USD
1099-MISC**/NEC: >= $600 USD
*Per updated IRS regulations, beginning January 1, 2022, platforms are required to send 1099-Ks to businesses when the gross amount of total reportable payments exceeds $600 in a calendar year. This change impacts tax reporting for 2022 and subsequent years.
For returns prior to 2022, platforms were only required to send 1099-Ks to businesses when the gross amount of total reportable payments exceeded $20,000 and the total number of such transactions exceeded 200 in a calendar year.
**While most states follow federal thresholds, some have different filing thresholds or requirements. Therefore, a platform may issue you a 1099 tax form for state tax reporting purposes even if you do not meet the federal thresholds. Make sure to check with your platform about your state’s reporting thresholds.
This article is neither legal advice nor tax advice. We recommend that you speak to your tax advisor with any questions or concerns around tax reporting.