Hey Folks,

Here is what turbo tax has stated -- So if my sales are below $20,000 and less then 200 transactions I don't have to report it? Confused.  Love to hear your thoughts. 


Written by Rocky Mengle, Attorney • Reviewed by a TurboTax CPA
Updated for Tax Year 2025 • January 16, 2026 9:55 AM
Important:Article Summary
This should save you ~10 minutes of reading

    For payments received in 2025, you should have received a Form 1099-K from PayPal if your total payments through the company were more than $20,000 and more than 200 transactions.

No - you always have to report your earnings. But, if you are less than $20K etc. then Paypal doesn't need to send you a form. Of course this form duplicates information that is probably already on tax forms from the agencies themselves and so the 1099-K doesn't necessarily indicate extra income over and above those.

"Previously, the American Rescue Plan Act of 2021 had lowered the 1099-K reporting threshold to $600. However, in the following years, the IRS issued a series of deferrals and a plan to gradually transition to the reduced threshold. In 2025, the One Big Beautiful Bill Act restored the original reporting threshold of more than $20,000 and more than 200 transactions."

Quote from: Schadenfreude on February 01, 2026, 15:43
"Previously, the American Rescue Plan Act of 2021 had lowered the 1099-K reporting threshold to $600. However, in the following years, the IRS issued a series of deferrals and a plan to gradually transition to the reduced threshold. In 2025, the One Big Beautiful Bill Act restored the original reporting threshold of more than $20,000 and more than 200 transactions."

Correct, Paypal and eBay have become diligent and need all kinds of proof that I'm really myself. The reporting threshold is back at that miserable $600 again. If it's a US company you'll get a 1099-K, I can't say for the others.

Quote from: steheap on January 31, 2026, 16:22
No - you always have to report your earnings. But, if you are less than $20K etc. then Paypal doesn't need to send you a form. Of course this form duplicates information that is probably already on tax forms from the agencies themselves and so the 1099-K doesn't necessarily indicate extra income over and above those.

Also correct, and I did. I have the advantage of filing a Schedule C and I always report all income, because then I can report expenses. It's a small benefit, but I also take depreciation on equipment, travel and room fees. Every little thing that helps me counts.  I keep detailed records now, after being audited one time years ago, which cost me over $5,000 for "poor records".

Short version, the rules have changed. Don't believe the Internet which has out of date advice. $600.01 is the threshold. "Over $600"

https://www.irs.gov/pub/taxpros/fs-2025-08.pdf

The IRS says so.