On December 23, 2022, the IRS made an announcement regarding the delay for implementation of $600 reporting threshold for third-party payment platforms’ Forms 1099-K. See the announcement here. Changes have been made in this article to reflect this update.
What is a 1099-K?
Form 1099-K, Payment Card and Third Party Network Transactions, is an annual IRS information return used to report certain transactions managed by third-party settlement organizations. Refer to IRS.gov for more details regarding Form 1099-K.
Will I receive a 1099-K?
Grailed sellers may receive a 1099-K when certain sales thresholds through third-party settlement organizations (i.e. PayPal, Stripe) are met.
If you are not based in the United States or do not meet the sales threshold requirements set forth below, you may not receive a 1099-K.
Grailed’s payment processors (PayPal or Stripe) will mail you a 1099-K if you who have grossed more than $20,000 USD from over 200 transactions in a calendar year. This reportable income should be reflected on tax returns to be filed for the 2022 tax year.
If you have not met the thresholds described above, you will not receive a 1099-K.
If you believe you should have received a 1099-K and have not received one, please reach out directly to the payment processor (PayPal or Stripe) to find out if they have prepared one for you.
When will I receive a 1099-K?
You should receive a Form 1099-K by January 31, 2023 from PayPal or Stripe if you exceed 200 transactions and your gross payments exceed $20,000 USD for the 2022 calendar year.
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