Form 1099-K (Rev March 2024)-2025

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The law requiring certain payment networks to provide forms 1099K for information reporting on the sale of goods and services does not apply to the Zelle Network. If payments you receive on the Zelle Network are taxable, it is your responsibility to report them to the IRS.
Business payers must issue 1099s on Form 1099-MISC to recipients by January 31, 2024, or February 15, 2024, if amounts are reported in boxes 8 or 10. Payers must issue Form 1099-NEC to recipients by January 31, 2024. The recipient taxpayers use form 1099 to complete their income tax return(s).
Well provide a Form 1099-K to you by January 31, 2024 if: 1) you received more than $20,000 and had more than 200 transactions; or 2) you did not give us your SSN, ITIN, or EIN and we withheld on your payments; or 3) your payments were subject to withholding, even if you did not have available funds to cover your
What this means. This means that for 2023 and prior years, payment apps and online marketplaces are only required to send out Forms 1099-K to taxpayers who receive over $20,000 and have over 200 transactions. For tax year 2024, the IRS plans for a threshold of $5,000 to phase in reporting requirements.
Zelle doesnt report to the IRS for business or personal use of its platform. Technically, it doesnt count as a third-party payment network, so the usual reporting requirements dont apply to it. In addition, personal transactions on a third-party payment network are never taxable.
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As a result, third-party payment institutions are now required to report when the taxpayer receives $5,000 or more in payments during the tax year. The IRS threshold will be $5,000 for tax year 2024, as part of a phase-in to implement the $600 reporting threshold enacted under the American Rescue Plan.
In a time of electronics, you probably use popular apps like Zelle, Venmo, Paypal and others. Since their inception, people would fill out a form 1099 if they made more than $20,000 through those apps. Thats about to change. Starting with tax year 2024, the number has gone down to $5,000.

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