💳 How to Prep for 1099-K Changes Before Year-End

If you sell products online, accept payments through apps like Venmo or PayPal, or run a side hustle, you’ve probably heard about Form 1099-K. While the IRS delayed the $600 reporting threshold until 2026, there are still important updates to know before December 31. At Keens Tax Service, we help Oklahoma taxpayers stay ahead of the curve — and avoid surprises in the new year.

🧠 What Is Form 1099-K?

Form 1099-K reports third-party payment transactions — like credit card sales or payments received through platforms such as:

PayPal
Venmo (for business)
Square
Etsy, eBay, and other marketplaces

You’ll receive a 1099-K if you meet the IRS threshold for reportable transactions. For 2025, that threshold remains at $20,000 in gross payments and 200 transactions — but many platforms may still issue the form even if you fall below that.

📅 What’s Changing — and What’s Not

✅ The $600 threshold has been delayed until 2026, giving taxpayers more time to adjust.
⚠️ Some states (like Massachusetts and Virginia) still enforce lower thresholds.
🧾 Platforms may still issue 1099-Ks voluntarily, even if you don’t meet the federal limit.

💡 Tip: If you receive a 1099-K for personal transactions (like splitting rent or reimbursing a friend), you’ll need to clarify that with the IRS — or risk being taxed on non-income.

🧾 Who Should Pay Attention?

Online sellers (Etsy, eBay, Facebook Marketplace)
Freelancers and gig workers (Upwork, Fiverr, DoorDash)
Small business owners using payment apps
Anyone who receives payments for goods or services digitally

If you use apps for personal transfers, make sure your account is marked as “friends and family” — not “goods and services.”

📊 How to Prepare Before December 31

1️⃣ Separate Business and Personal Transactions

Use different accounts for business and personal payments. This helps avoid confusion — and protects your refund.

2️⃣ Track Your Income and Expenses

Keep a record of:

Sales receipts
Business expenses
Platform fees and commissions

Keens Tax Service offers a to help you stay organized.

3️⃣ Review Your Payment App Settings

Check how your accounts are labeled. If you’re receiving payments for services, make sure your profile reflects that — and that you’re ready to report the income.

4️⃣ Don’t Ignore a 1099-K

If you receive one, report it — even if it’s incorrect. We’ll help you reconcile the amount and avoid IRS flags.

🏛️ Oklahoma-Specific Notes

While Oklahoma doesn’t currently enforce a separate 1099-K threshold, state income tax still applies to business income. We’ll help you:

Report correctly on your Oklahoma return
Avoid double taxation
Claim eligible deductions for your side hustle

Visit our page for more.

🔗 Helpful Resources

🤝 Why Keens Tax Service Is Your 1099-K Ally

We offer:

🧾 Side hustle and gig income support
🔍 1099-K reconciliation and reporting
📊 Expense tracking tools and templates
💬 Personalized guidance for Oklahoma taxpayers

Whether you’re selling crafts or running a full-time business, we’ll help you file with clarity and confidence.