Compliance
Form 1099-K Threshold Reversion: What Businesses and Gig Workers Need to Know
The reporting threshold for Form 1099-K has reverted under the One, Big, Beautiful Bill—this impacts many small businesses, self-employed individuals, and gig economy workers.
By NomadicTax Research Team • 5-8 min read • November 16, 2025
## Background on 1099-K Thresholds
Under the American Rescue Plan Act of 2021, third-party payment platforms were required to issue Form 1099-K to a payee once payments exceeded **$600**, regardless of transaction count. The One, Big, Beautiful Bill (OBBB) has **reinstated** the previous threshold ($20,000 in aggregate *and* more than 200 transactions) for most years and circumstances. ([irs.gov](https://www.irs.gov/newsroom/irs-issues-faqs-on-form-1099-k-threshold-under-the-one-big-beautiful-bill-dollar-limit-reverts-to-20000?utm_source=openai))
## Who Is Affected?
- **Gig workers** or sellers on marketplaces using platforms like eBay, Etsy, DoorDash, etc., whose payment volume is below $20,000 or transaction count below 200 may no longer receive a 1099-K.
- **Small business owners** relying on payment apps. Keeping income records remains critical even if Form 1099-K isn’t issued.
- Platforms and payment processors must adjust reporting based on revised rules. Fact Sheet FS-2025-08 clarifies these changes. ([irs.gov](https://www.irs.gov/newsroom/irs-issues-faqs-on-form-1099-k-threshold-under-the-one-big-beautiful-bill-dollar-limit-reverts-to-20000?utm_source=openai))
## What to Do Now: Compliance Tips
- **Maintain accurate records**: Even without a 1099-K, you're required to report all income. Invoice records, bank statements, and payment platform reports are your friend.
- **Review past filings**: If you’ve been underreporting due to misunderstanding thresholds, consult a tax advisor about amending prior returns.
- **Stay updated**: Platforms may still voluntarily issue 1099-Ks even if not strictly required under the law—understand what you’ll get.
## Examples
- *Example A*: Jane sold handmade jewelry via a marketplace and earned $18,000 in 220 transactions. Under old rules, she’d get a 1099-K; under current OBBB rules, she doesn’t—unless both thresholds are met.
- *Example B*: Mike rideshare’s gig revenue is $15,000 but across 300 rides. He won’t get a 1099-K because total payments ($15,000) are under $20,000.
## Be Proactive
✅ Check your digital payments and count them properly. What counts as a reportable payment? Always for goods/services, not personal reimbursements.
✅ Keep a ledger or digital tracker of payments from third-party networks all year.
✅ Talk to bookkeeper or tax professional if you think thresholds may impact your filings.
Staying informed and organized under these changing rules is the key. The new threshold under the OBBB law may reduce paperwork for many, but income reporting obligations **don’t disappear**.