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Tax reporting threshold

1099-K Threshold Checker

Enter annual marketplace gross payments and transaction count to see whether a third party settlement organization would be over the current federal 1099-K reporting threshold.

Marketplace totals
Federal result
1099-K threshold status

Below federal TPSO threshold

Federal TPSO reporting currently requires more than $20,000 in gross payments and more than 200 transactions.

Gross payment test

$1,500.01

more gross payments needed

Transaction test

11

more transactions needed

Important tax note

Below-threshold income can still be taxable, state reporting thresholds can be lower, and marketplaces can issue Form 1099-K even below the federal TPSO threshold.

What this checker does

The current federal TPSO threshold is based on gross payments and transaction count, not net profit after fees, shipping, refunds, item cost, or supplies. Use gross marketplace payment totals when checking the federal reporting trigger.

The IRS notes that the reporting threshold does not decide whether income is taxable. Sellers still need complete records for gross sales, marketplace fees, cost of goods, shipping, refunds, and other deductions.

Source and limits

This page reflects the IRS Form 1099-K FAQ reviewed in April 2026: TPSOs report when gross payments exceed $20,000 and there are more than 200 transactions. State thresholds may be lower, and platforms may still issue forms below the federal threshold.

This is a planning calculator, not tax advice. Check the IRS Form 1099-K FAQs or a tax professional before filing.