The short answer
If it's money you earned selling goods or services, it's taxable whether or not you get a form. Money from friends and family, like splitting dinner or rent, isn't income. Payment apps send a Form 1099-K only once you pass $20,000 and 200 transactions in a year.
Last reviewed: October 2026
What's taxable
- Payments for work you did, like side jobs, hair, cleaning, rideshare or delivery
- Sales from a business, even a small one
- Profit when you sell something for more than you paid for it
What isn't
- Splitting a bill, rent or a trip with friends
- Gifts from family
- Paying someone back
- Selling your own used stuff for less than you paid. There's no profit, so no tax. You can't deduct the loss, either.
Did the 1099-K rule change?
Yes, more than once. The threshold had been scheduled to drop to $600, but a 2025 law put it back at more than $20,000 and more than 200 transactions. So most people with casual payments won't get a 1099-K.
The form is only a report. Whether or not you get one, income from work or a business still has to go on your return.
Got a 1099-K that's wrong?
If it includes personal payments that aren't income, don't ignore it. The IRS gets a copy. Your return needs to show the amount and back out the part that isn't income, or the IRS may send a CP2000 notice. See our CP2000 page.
Simple habits that help
- Keep business payments in a separate account or a business profile in the app.
- Use the "friends and family" setting only for personal payments.
- Download your yearly statement from each app.
Official source: IRS: Understanding your Form 1099-K.
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Disclaimer: This page is general information, not tax advice. Every situation is different, and tax rules change. Reading this page doesn't make you a client.