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mosestax
Level 1

How can I get vendors paid with a credit card to show up on the 1099 summary?

I understand it all...except...what I wanted to know was/is....do the credit card companies issue 1099's if the threshold is not met.  I would hope they would since that is not the only payment method...or maybe its such a small amount it does not even matter.

FishingForAnswers
Level 10

How can I get vendors paid with a credit card to show up on the 1099 summary?

@mosestax  Mm, well, it depends a bit.

 

If you are paid directly by credit card, debit card, or gift card, your merchant service provider will prepare a 1099-K for you regardless of how many times you were paid, or how much you were paid for. There is no threshold for that.

 

If it was through a payment app or online marketplace (Think Etsy, or maybe Facebook), they are required to send one if the payments exceeded $5,000.00 in 2024. This is going to $2,500.00 in 2025 and $600.00 in 2026. They can, of course, elect to send you one regardless of the amounts involved.

 

The following link does a pretty good job breaking this side of things down:

 

https://www.irs.gov/businesses/understanding-your-form-1099-k

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