What the One, Big, Beautiful Bill changed for Form 1099-K, and from when

Section 70432 of the One, Big, Beautiful Bill (Public Law 119-21, enacted July 4, 2025) rewrote the de minimis rule for third party settlement organizations. They now report a payee's third party network transactions only if the amount exceeds $20,000 and the number of transactions exceeds 200.^[1]

The change takes effect as if it had been part of section 9674 of the American Rescue Plan Act of 2021,^[1] which had lowered the threshold to $600 for returns for calendar years beginning after December 31, 2021.^[2] The IRS describes the result plainly: the law retroactively reinstated the threshold that applied before the American Rescue Plan.^[3][4] The IRS published updated Form 1099-K FAQs on the change in Fact Sheet 2025-08.^[3]

• Payment apps and online marketplaces report when your total gross payments for goods or services exceed $20,000 and there are more than 200 transactions.^[3][5]
• Card payments have no threshold. The IRS gives the example that $0.01 of payment card transactions should produce a Form 1099-K from the card processor.^[3]
• Below the threshold, a platform may still choose to send a form, and your state may set a lower reporting threshold of its own.^[3]

The threshold decides when a form is filed, not what counts as income. The IRS notes that income is taxable whether or not a Form 1099-K arrives.^[3]

The law changed who receives a form, not what the form reports. When a 1099-K does arrive, its gross amount is still not adjusted for fees, credits, refunds, shipping, cash equivalents or discounts.^[6] Why that figure differs from your payouts, and how the books tie it out, is covered in our answer why your 1099-K doesn't match your sales.