1099-K Threshold Calculator (2026)

After OBBBA 2025 repealed the $600 rule, a platform (Venmo, PayPal, Cash App, eBay, Etsy, Stripe) issues a Form 1099-K for 2026 only when a user receives more than $20,000 AND more than 200 transactions in business payments during the calendar year. Both conditions must be met. This restores the pre-2021 de minimis exception.

Goods and services payments - selling items, providing services, gig work. Personal transactions (splitting a dinner, rent reimbursement, gifts) should NOT be reported on 1099-K. Most platforms have toggles for "goods/services" vs "personal/family" - using the wrong one can trigger an erroneous 1099-K. Always use "personal" for non-business transactions to avoid tax-time confusion.

No. The $20,000 / 200-transaction threshold only decides whether the platform issues a 1099-K. Income from goods and services is taxable whether or not a form is issued, so sub-threshold gig and resale profit must still be reported on Schedule C and is still subject to self-employment tax (15.3% on 92.35% of net). The form makes the income harder to forget; it does not create or remove the tax.

Selling a personal item at a loss (your old couch on Facebook Marketplace for $700) is NOT taxable. If you do receive a 1099-K because you crossed $20,000 and 200 transactions, you report the gross on Schedule 1 then offset with the same amount on Schedule 1 line 24z as "Form 1099-K personal item sold at a loss." Selling AT A GAIN (a collectible you bought for $100 and sold for $700) IS taxable - report as capital gain on Schedule D.