Answer
Will I get a 1099-K from PayPal or Stripe in 2026?
By Raman Singh, EA, CFP® · Updated May 2026
Short answer
Only if you receive more than $20,000 in payments across more than 200 transactions through that platform in the year. The One Big Beautiful Bill Act permanently restored the original Form 1099-K threshold of $20,000 and 200 transactions and repealed the $600 threshold that had been scheduled to take effect. As always, you owe tax on all of your business income whether or not a 1099-K is issued.
What a 1099-K is: a 1099-K is issued by payment platforms and third-party settlement organizations (PayPal, Stripe, Square, Venmo for business, and similar) to report the gross amount of payments they processed for you. It is separate from the 1099-NEC a client sends you directly.
The threshold whiplash, resolved: a 2021 law had lowered the 1099-K threshold to $600 with no transaction minimum, then the IRS delayed it twice and phased in interim amounts. OBBBA ended the uncertainty by restoring the long-standing $20,000 and 200-transaction threshold permanently. For 2026 you will only receive a 1099-K from a platform if you exceed both tests on that platform.
Why it does not change your tax: the 1099-K is an information return, not a measure of taxable income. Whether or not you cross the threshold, every dollar of business revenue you collect is taxable and must be reported. A consultant invoicing $90,000 through Stripe and one invoicing $90,000 by bank transfer owe the same tax. The form only affects what the IRS receives a copy of.
What to watch for: two issues are common. First, a 1099-K reports gross payments, including platform fees and refunds, so the figure can be higher than your actual net revenue, and your books need to reconcile to it. Second, personal reimbursements sent through a business payment account can inflate the gross figure. Keep personal and business payment accounts separate so the 1099-K matches your real income.
Want this applied to your specific situation?
Apply for a spot or book a short call with Raman. We respond within one business day.