Form 1099-K: Federal & state thresholds

If you process payments with Wave and meet the minimum reporting requirement set by the IRS or your state, you will receive a 1099-K form from Wave in January for the previous year.

In November 2023, the IRS announced they would delay lowering reporting thresholds to tax year 2024. This means for tax year 2023, the IRS thresholds will remain the same. For more information, refer to this article on the IRS’s website

As per the current IRS threshold, you will receive a form 1099-K for tax year 2023 if you have processed over $20,000 and 200 transactions. However, if you did not meet this threshold, you may still receive a form 1099-K depending on your state’s reporting threshold.

State

Threshold

Arkansas

> $2,500 and > 0 transactions

D.C.

> $600 and > 0 transactions

Illinois

> $1,000 and > 3 transactions

Maryland

> $600 and > 0 transactions

Massachusetts

> $600 and > 0 transactions

Montana

> $600 and > 0 transactions

New Jersey

> $1,000 and > 0 transactions

Vermont

> $600 and > 0 transactions

Virginia

> $600 and > 0 transactions

All other states follow the IRS threshold

> $20,000 and > 200 transactions

Learn more about Form 1099-K and federal reporting requirements on the IRS website: Understanding your Form 1099-K.