1099-K in 2026: the $20,000 / 200-transaction threshold is back

For 2026, Amazon — like any marketplace or payment app — must send you a Form 1099-K only if your gross payments exceed $20,000 AND you have more than 200 transactions in the year. (Card-processing settlement has no such minimum: the threshold applies to third-party network transactions.) The old federal threshold is back: the One Big Beautiful Bill Act (July 2025) repealed the planned lower limits retroactively (IRS: Understanding your Form 1099-K; IRC §6050W(e)). One thing did not change: your marketplace income is taxable whether or not the form arrives.

What Form 1099-K is

Form 1099-K is an information return filed by payment settlement entities — marketplaces like Amazon, and payment processors like PayPal or Stripe — reporting the gross amount of payments settled to you during the year (IRS: Understanding your Form 1099-K). The IRS receives a copy, so the numbers on it are what the IRS expects to see reflected in your return.

The issuer must furnish your copy by January 31 of the following year (IRS: General Instructions for Certain Information Returns), so the form for 2026 sales arrives by the end of January 2027. Amazon sellers find it in Seller Central's tax document section.

The threshold: $20,000 and 200 transactions

The reporting threshold has been a moving target for four years. The American Rescue Plan Act of 2021 cut it to $600 with no transaction count; the IRS then delayed that change repeatedly and announced a phase-in ($5,000 for 2024). In July 2025 Congress reversed course: the One Big Beautiful Bill Act restored the original rule — more than $20,000 in gross payments and more than 200 transactions — as if the lower thresholds had never been enacted (IRC §6050W(e); Pub. L. 119-21).

Two practical consequences:

• Both conditions must be met. $30,000 across 150 transactions — no federal 1099-K. $25,000 across 300 transactions — a 1099-K arrives.
• Some states set their own, lower thresholds for state reporting, so you may still receive a form even below the federal line. Check the rules of your state of residence or registration.

Gross means gross — not your profit

Box 1a of the 1099-K is the gross, unadjusted amount of payments. It is not reduced by:

• Amazon's referral and FBA fees;
• refunds and chargebacks;
• shipping or other charges passed through to you.

That is why the 1099-K number is usually far larger than what actually reached your bank account — and why it must never be copied into a tax return as "income" without reconciliation. Your books, built from settlement reports, are what turn that gross figure into actual revenue, fees, refunds and profit.

What to do when it arrives (or doesn't)

1. Reconcile it against your books. The gross on the form should match the gross in your settlement-based records for the same period. Investigate any gap before filing.
2. Report your income either way. The threshold decides whether the form is issued, not whether the income is taxable. Sales below $20,000 are still reportable (IRS: Understanding your Form 1099-K).
3. Keep the form with your records. If the IRS ever asks why your return differs from the 1099-K, the reconciliation is your answer.

Key seller deadlines for the year, with weekend shifts applied, are on our tax calendar.

Where Taxller fits

Taxller builds daily double-entry books from your marketplace settlements, so the gross-to-net path — sales, fees, refunds, payouts — is already reconciled when the 1099-K arrives. Comparing the form to your books becomes a check, not an archaeology project. There is more on the setup for US sellers on our solutions page.

Sources

• IRS — Understanding your Form 1099-K
• IRS — About Form 1099-K
• IRS — Instructions for Form 1099-K
• IRS — General Instructions for Certain Information Returns
• IRC §6050W — Returns relating to payments made in settlement of payment card and third party network transactions
• Pub. L. 119-21 — One Big Beautiful Bill Act (H.R.1, 119th Congress)