For the Polish-American community, this is good news for everyone who makes extra money or runs a small business through payment apps and online platforms: Etsy craft sellers, eBay and Facebook Marketplace traders, Uber and Lyft drivers, Airbnb hosts, or freelancers paid via PayPal or Venmo. The tax form that many small sellers feared will not land in their mailboxes nearly as easily as was announced a few years ago.
Where all the confusion about the $600 threshold came from
Form 1099-K reports payments received through payment cards and so-called third party settlement organizations (TPSO) — meaning payment apps and sales intermediary platforms such as PayPal, Venmo, Cash App, Etsy, eBay, Airbnb, or Uber. The American Rescue Plan Act of 2021 envisioned gradually lowering the reporting threshold down to $600, with no minimum transaction count — which in practice would mean a tax form for almost anyone who sold something online for more than the price of a few drinks at a bar.
The IRS delayed the implementation of this lower threshold multiple times, temporarily applying higher amounts. Ultimately, the One, Big, Beautiful Bill, signed in the summer of 2025, permanently rolled back those plans. On October 23, 2025, the IRS published updated questions and answers in Fact Sheet 2025-08 (IR-2025-107), which directly confirms this.
Current threshold: $20,000 and 200 transactions
According to current IRS guidelines, payment platforms and apps (TPSOs) are required to issue Form 1099-K only when the total amount of payments for goods or services for an individual exceeds $20,000 and the number of transactions exceeds 200 in a calendar year. Both conditions must be met simultaneously. This is the exact same threshold that applied before 2021.
The situation is different for card payments (credit, debit, or gift cards) — here, no threshold applies. The entity processing card transactions must report every single amount, even if it is just one dollar. The IRS also notes that some states have their own lower reporting thresholds for TPSOs — which is why you might receive the form even with lower revenue than the federal $20,000, if state law so requires.
No form does not mean tax-exempt
This is the most important caveat in the entire matter: not receiving Form 1099-K does not mean that the income is tax-free. The IRS explicitly emphasizes this in its FAQs — the reporting threshold does not determine whether a payment is taxable income. Every piece of income, regardless of the amount and form (cash, transfer, goods), must be reported on your tax return unless the law explicitly exempts it from taxation.
It is also worth remembering that the amount on the form is gross revenue — without deducting platform commissions, refunds, shipping costs, or discounts. The seller, based on their own records, calculates the actual taxable income. Money sent between friends or family as a gift or reimbursement (for example, for a shared concert ticket) should not be reported on Form 1099-K and is typically not taxable income — unlike payment for goods or services.
What this means in practice
For a Polish artisan selling on Etsy, an Uber driver, or a freelancer paid via PayPal, this means fewer tax forms than was announced a year or two ago — but not fewer tax obligations. It is safest to keep your own separate records of income from earning activities, regardless of whether the platform issues a 1099-K or not. It is also a good idea to separate business transactions from personal ones on payment apps — some apps allow you to mark a payment as “friends and family,” which makes later accounting easier. We write more about how to plan your taxes for the upcoming season in our guide US Tax Return 2026.
This material is for informational purposes only and does not constitute tax advice. Regulations regarding reporting thresholds may vary by state, and each tax situation requires an individual assessment — when in doubt, it is worth consulting a licensed accountant or tax advisor.
Polish accountants and tax advisors who can help you settle your income from Etsy, Uber, or freelancing in accordance with current thresholds are waiting in the Polish Pages directory.
