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1099 K Form

When payment apps send a 1099-K, the $20,000 and 200-transaction rule, which payments are taxable, and a calculator for business profit vs personal sales.

Updated November 4, 2026. Free, no sign-up; everything runs in your browser and nothing you type is stored.

1099 K form tax calculator

Gross payments on the 1099-K ($)Number of transactionsPlatform and payment fees, refunds, shipping ($)Cost of goods (or original cost of personal items, $)Selling as a business?Income tax rate (%)

Estimated federal tax

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–Form 1099-K required?

1099 K form: the $20,000 and 200 rule

Payment apps and online marketplaces (third-party settlement organizations) must file Form 1099-K only if your payments for goods and services exceed $20,000 and more than 200 transactions in the year (IRS). Money from friends and family for personal reasons isn't reportable income. Some states use lower thresholds.

Is 1099-K income taxable?

Business sales: report on Schedule C and deduct fees, refunds, shipping and cost of goods; profit is subject to income and self-employment tax.
Personal items sold at a loss (used furniture, clothes): not taxable, but report the 1099-K amount and the offsetting cost so the IRS doesn't treat it as income.
Personal items sold at a gain are capital gains.

Common questions

What is the 1099-K threshold?

Over $20,000 and more than 200 transactions in a year.

Is money from friends on Venmo or PayPal taxable?

Personal gifts and reimbursements aren't income.

Do I pay tax on personal items I sold?

Not if you sold them for less than you paid.

Sources

More paycheck and tax calculators: 1099 C · 1099 INT · 1099 MISC

General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.