Understanding Your 1099-K

The 1099-K is a new IRS information return for reporting electronic financial transactions to improve voluntary tax compliance. You should receive a 1099-K by the end of January, 2012, if you received payments from merchant cards or third party payment networks, e.g., Paypal or Google checkout at or above the minimum reporting thresholds: gross payments that exceed $20,000, AND more than 200 such transactions.

Amounts reported on the 1099-K should be included on Schedule C – Profit or Loss From Business.

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