IRS Finalizes Phased 1099-K Reporting Threshold Rules for Freelancers and Gig Workers
The Internal Revenue Service has enacted the permanent $2,500 reporting threshold for Form 1099-K, requiring digital payment apps to issue tax forms to independent contractors.
The US Internal Revenue Service (IRS) has issued final regulatory guidelines governing payment settlement entities and peer-to-peer networks under Section 6050W.
For the 2026 tax year, payment processors such as PayPal, Stripe, and Venmo must issue Form 1099-K to any taxpayer whose gross commercial payments exceed $2,500 across any number of transactions. Freelancers and gig economy workers are advised to track business expenses and quarterly estimated tax payments closely.
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