I live in Vermont, Massachusetts, Illinois, Virginia, or Maryland, what are the Form 1099-K reporting requirements?

The following information provides responses to common questions you may have about Form 1099-K reporting requirements if you live in Vermont, Massachusetts, Illinois, Virginia, or Maryland.

Why did I receive a 1099-K if I didn’t meet the IRS reporting threshold?
Some states (VT, MA, VA, IL, MD) have reporting obligations at a threshold lower than the federal reporting thresholds:

  • Vermont, Massachusetts, Virginia, and Maryland: $600 USD in gross payment volume from sales of goods or services in a single calendar year regardless of the number of transactions.
  • Illinois: $1,000 USD in gross payment volume from sales of goods or services in a single calendar year with at least 3 payment processed.

I updated my address to Vermont, Massachusetts, Illinois, Virginia, or Maryland recently, will PayPal file a Form 1099-K concerning the activity in my PayPal account?
The copy of the Form 1099-K that you receive is based on your primary account address on the last day of the previous tax year. If you changed your primary address to one of these states after that date, your account activity will be captured in Form 1099-K reporting for the following tax year.
 
Where can I find more information on the reporting requirements for Vermont, Massachusetts, Illinois, Virginia, or Maryland?
You can find more information about the reporting requirements for Vermont, Massachusetts, Illinois, Virginia, or Maryland by going to the respective tax authority’s website.
 

Save $20 on TurboTax Self-Employed.

TurboTax Self-Employed uncovers deductions personalized to you and your line of work. Check out with PayPal and you can save. Terms apply.

Learn More