What is Form 1099-K?
Payment settlement entities (PSEs) — like Stripe, PayPal, Venmo (business), Uber, DoorDash, Etsy, and Amazon — send a 1099-K when they process $600 or more in transactions for you during the year. Box 1a reports gross transaction volume, not net income.
SupportedKey Boxes
| Box | Description | Where it flows |
|---|---|---|
| Box 1a | Gross amount of payment card/third-party transactions | Schedule C Line 1 (gross receipts) |
| Box 1b | Card-not-present transactions (subset) | Informational |
| Box 2 | Merchant category code | Informational |
| Box 3 | Number of transactions | Informational |
| Box 4 | Federal income tax withheld | Form 1040 Line 25b |
| Boxes 5a–5l | Monthly breakdown | Informational |
How PaisaTax Handles It
- Upload or manual add — one slot per payment platform
- Auto-creates Schedule C — just like 1099-NEC, adding a 1099-K automatically creates a Schedule C slot
- Business assignment: Each 1099-K is assigned to a specific Schedule C via
scheduleCSlotRef - Combined gross receipts: Schedule C Line 1 = sum of all 1099-NEC + 1099-K for that business
Common Situations
- Gross vs. net: Box 1a is gross — it includes platform fees, refunds, and chargebacks. Deduct platform fees and other expenses on Schedule C to arrive at net profit.
- Personal payments on Venmo/PayPal: Personal transactions should not be on a 1099-K. If they are, report the gross on Schedule C Line 1 and deduct the personal amount as a negative adjustment.
- Multiple platforms: One 1099-K per platform. Assign each to the correct Schedule C business.
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Warning
The 1099-K reports gross transactions, not income. A driver who collected $50,000 through Uber but had $30,000 in expenses has $20,000 net profit. Always enter expenses on Schedule C.