Type 1099-Ok Reporting Thresholds: ,000? 0? ,000? Right here’s What You Must Know


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1099-Ok Reporting

Type 1099-Ok is utilized by third-party platforms or settlement organizations (together with in style cost apps and on-line marketplaces) to report funds to retailers whose annual exercise exceeds $20,000 in gross funds and has at the very least 200 transactions in a calendar 12 months. The kinds are often issued the next 12 months by March 31.

Cut back and Delay

With the American Rescue Plan Act of 2021, the brink was dropped to $600 in complete gross funds with the transaction depend check scrapped solely. Nonetheless, implementation of the diminished threshold has been delayed a number of instances, initially in 2022 after which once more in 2023. So what’s the deal for 2024? 

The Scoop on 2024

Late final 12 months, the IRS all however scrapped the $600 threshold and as an alternative landed on an arbitrary $5,000 threshold, with no check for complete transaction depend. They’re calling it a phased method of the $600 threshold, however we aren’t holding our breath. All we all know is that the reporting threshold for 2024 will likely be $5,000 — interval.

This marks a considerable departure from the earlier $20,000 and 200 transaction requirement, encompassing a a lot bigger group of retailers than ever earlier than.

How This Impacts FastSpring Sellers

In 2023, FastSpring sellers have been solely topic to 1099-Ok reporting in the event that they surpassed $20,000 in gross funds and 200 transactions. Nonetheless, with the brink dropping to $5,000 for 2024, we anticipate a dramatic rise within the variety of sellers receiving this kind, with over half probably receiving this kind for the very first time. 

At FastSpring, we sustain with the fixed shifts in tax guidelines and laws so that you just don’t should, permitting you to give attention to development whereas we handle the complexities of worldwide tax.

 Arrange a demo or strive it out for your self.


For extra info, you’ll be able to view the IRS’s official announcement right here.

JT Grewal

JT Grewal

JT Grewal is a Tax Supervisor at FastSpring. For 7+ years, JT has been guiding tech corporations by the complexities of the tax world. After hours, he enjoys capturing moments by his digicam or diving into on-line video video games.



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