OBBB Reduces Form 1099-K Reporting Threshold

Prior to the American Rescue Plan Act (ARPA) of 2021, Form 1099-K was only required to be issued for third party networks transactions if the total number of transactions exceeded 200 for the year and the aggregate amount of these transactions exceeded $20,000 per recipient. ARPA eliminated the de minimis exception based on a minimum number of transactions. Under the OBBB, the annual reporting threshold will be $2,000 per recipient for 2026. The $2,000 amount will be adjusted for inflation in subsequent years. Absent the changes, the reporting threshold was set to decrease to $600 starting in 2026. Prior to the OBBB, 2022 through 2025 were treated as transition years. During 2024, third-party settlement organizations like Venmo, StubHub, Airbnb and PayPal were required to report if the total payments received by a taxpayer was over $5,000. In 2025, the threshold amount was reduced to $2,500. For more information on the new Form 1099-K reporting requirements, visit Tax Facts Online. Read More: Link to Q8724.01.