Who issues 1099-K
- eBay (managed payments)
- Etsy (Etsy Payments)
- Amazon (Seller Central + Associates)
- PayPal Business
- Stripe
- Square
- Shopify Payments (via Stripe)
- Other US payment processors
Federal 1099-K threshold
$5,000 in gross transactions per year for tax year 2026 (changed from $20,000 in prior years). Phasing down to $600 by 2027/2028. Some US states have lower thresholds (Massachusetts $600, Virginia $600).
What appears on the 1099-K
- LLC name and EIN
- Total gross transactions for the year (before refunds, fees, expenses)
- Number of transactions
- Card type breakdown (credit card vs debit card)
- Sample monthly breakdowns
What 1099-K does not mean
The 1099-K is gross revenue, not taxable income. Platform fees, refunds, shipping costs, and business expenses come off the top. Your actual taxable income on Form 1120 cover will be lower than the 1099-K total.
How to reconcile
Pro forma 1120 cover reports total gross revenue (should match sum of all 1099-Ks plus any non-platform revenue). Operating expenses (fees, refunds, contractor pay, software) reduce to net business income. Net income flows through to you. For non-resident pass-through without ECI, US federal income tax owed is typically zero regardless.
If you do not receive a 1099-K
Below threshold or platform did not issue. You still need to report gross marketplace revenue on Form 5472 + pro forma 1120. The 1099-K is informational; the underlying tax obligation exists regardless of whether platforms issue the form.