CEDAR RAPIDS, Iowa (KCRG) – More people could receive a tax form in the mail this year that they’ve never seen before: a 1099-K form. The 1099-K form is a requirement for companies like ‘Venmo’ and ‘Etsy.’ It’s a law change that those with online businesses or side hustles will need to be ready for. Those online platforms used to only mail the form if the payment reached $20,000 and 200 transactions. The IRS wanted to drop the threshold to send the form in 2023 to just $600. Feedback from taxpayers, tax experts, and payment processors made it delay the change and move to a tiered transition period.

For the 2024 tax year, the threshold was dropped to 5 thousand dollars. In 2025, it will drop to $2,500 It will finally reach that $600 mark for 2026 and beyond. This tax season the threshold to get this form is lowering. Meaning more people will be filling out the form. It won’t just be small businesses who see this form show up in the mailbox. Nonprofits that use Venmo for donation purposes could also receive the form. It could also be sent to anyone who sells an item as a one-off if it’s over that threshold.

Experts recommend you keep track of every income, and every expense and holding onto any recipients you might be questioning. The forms are expected to start arriving by the end of this month.