Form 1099-K is an IRS information return that includes the gross amount of all payment transactions you received within a calendar year. You may receive a Form 1099-K directly from us depending on the totals of your sales and transactions. The IRS reporting threshold is calculated by reviewing your gross payment volume for sales of goods or services, as required by IRS regulations. The gross amount refers to the total amount received. The IRS filing requirement:
For calendar years before January 1, 2024:
- Gross payments that exceed $20,000, AND
- More than 200 such transactions
Filing requirements for some states might differ from federal requirements, therefore Raise collects SSN / TIN information for all payouts greater than $600 and files according to the individual state guidelines. State filing thresholds can be found on state tax authority pages.
1099K IRS guidance -https://www.irs.gov/businesses/understanding-your-form-1099-k