Form 1099-K Report it or Not?

The criteria for Form 1099-MISC is based on the type of payment while Form 1099-K focuses on the payment method. As a result, it is possible to receive both forms reporting the same payments.

You may receive a Form 1099-MISC if you were paid more than $600. On the other hand, Form 1099-K is issued to business owners who deal with transactions through credit card and third-party payment networks, such as PayPal. You’ll only get the Form 1099-K if you received more than $20,000 in gross payments and had more than 200 transactions.

If you receive a Form 1099-K, take the time to make sure the amount reported the Form is not already reported on the 1099-MISC Form. You don’t want to accidentally double up on the same income reported on both Forms.