If you received more than $5,000 in payments for goods and services through an online marketplace or payment app in 2024, expect a Form 1099-K to land in your mailbox (or inbox) in January 2025. This form, which the IRS also receives a copy of, isn’t a new concept, but its increasing prevalence can surprise taxpayers. Here's what you need to know.
IRS 2025 Tax Filing Season Filing —Income is Still Taxable
Let’s clear up a common misconception: nothing has changed about income tax rules. Whether it’s from a side hustle, part-time work, or selling goods and services, all income is taxable unless the law specifically excludes it. Even if you don’t receive a Form 1099-K, a Form 1099-NEC, Form 1099-MISC, or any other tax form, you still have to report income on your tax return.
Understanding Form 1099-K
The Form 1099-K is essential for accurately reporting your income. Think of it as a tool to cross-check your records. If you receive one, make sure to:
Reconcile It with Your Records: Review all payments and transactions to ensure they match the form.
Report Income Correctly: Use the 1099-K alongside your records to determine your total income.
Address Errors: If you receive a Form 1099-K that you believe is incorrect or unnecessary, act quickly to resolve the issue with the issuer.
Why Good Recordkeeping Saves You Headaches
Keeping thorough records of your transactions, expenses, and income streams is a taxpayer's best friend. Not only does it make tax filing easier, but it also provides a safety net if you need to dispute or clarify information on a Form 1099-K for this 2025 IRS tax filing season.
Take Charge of Your Taxes
Whether you’re diving into your side hustle or running a full-fledged business, understanding the role of Form 1099-K is crucial. Use it as a helpful guide—not a source of stress. Good recordkeeping and a clear grasp of what’s taxable will save you time, money, and frustration when filing your tax return.
You can find more information on the IRS website
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