U.S. · Tax forms
1099-B box 13 bartering.
Trade credits count as income when they land in your account.
Box 13 is the gross value you received through a barter exchange: cash, the fair market value of property or services, and trade credits or scrip. It does not include credits you later spend in another exchange. Barter income is generally reported on Schedule C (Form 1040) at the time received.
Add up a barter exchange year
Result
What box 13 includes
| Item | IRS treatment | Note |
|---|---|---|
| Cash | Included in box 13. | Gross amount, not net of fees. |
| Property | Fair market value is included. | Valued when you receive it. |
| Services | Fair market value is included. | If both sides agreed the value ahead of time, Pub. 525 says it is accepted unless shown otherwise. |
| Trade credits or scrip | Fair market value credited to your account is included. | Counted when credited, even if you spend them in a later year (Pub. 525 example 22). |
| Later exchange of credits | Not included again. | Spending credits is not new income. |
| Negative amounts | Do not report negative amounts. | Box 13 is never below zero. |
| Date | Box 1c is the date cash, property, a credit or scrip is actually or constructively received. | Sets the tax year. |
| Description | Box 1a describes the service or property provided. | Matches your own records. |
Where the income goes
Publication 525 says bartering is an exchange of property or services and that you include in income, at the time received, the fair market value of what you receive. Generally you report it on Schedule C (Form 1040). If the barter involves something other than services, you may need another form or schedule: its example of free rent in exchange for artwork reports the artwork as rental income on Schedule E. The 1099-B copy goes to the IRS too, so a missing box 13 amount is likely to be noticed.
Trade credits
Publication 525 example 22 covers a barter club that adds credit units to your account for goods or services you provide. You include in income the value of the credit units added, even if you do not use them until a later year. That matches the 1099-B instruction to count credits at the value credited to the account.
Withholding and timing
Publication 525 says the barter exchange should send Form 1099-B or a similar statement by February 15, 2026 for 2025 exchanges. Barter income usually has no regular income tax withholding, but backup withholding applies in certain circumstances.
This is not a securities sale
Box 13 stands apart from the sale boxes. The 1099-B instructions use boxes 1a to 12 for securities and other proceeds, and box 13 for barter exchange amounts. Publication 525 treats barter receipts as income from the exchange of property or services, generally on Schedule C, rather than as proceeds from a stock sale.
Where next
If your gain is capital, not barter, see box 1e. For another information-return decoder see the 1099-R distribution codes lookup.
Sources
- Instructions for Form 1099-B: Box 13 and Box 1a, Box 1c for bartering transactions.. Read November 2, 2026. (IRS page last reviewed April 30, 2026.)
- Publication 525 (2025): Bartering, Examples 20 to 23, Form 1099-B from barter exchange, Backup withholding.. Read November 2, 2026. (IRS page last reviewed April 30, 2026.)
Line and box numbers are those printed in the IRS instructions named above and can change from year to year; match each box by its label.
Frequently asked questions
What is 1099-B box 13?
Box 13 reports the gross amount a member or client of a barter exchange received: cash, the fair market value of property or services, and trade credits or scrip.
Is bartering taxable?
Yes. Publication 525 says you include in income, at the time received, the fair market value of property or services you receive in bartering.
Where do I report barter income?
Generally on Schedule C (Form 1040). If the barter involves something other than services you may need another form, such as Schedule E for rental income.
Are trade credits income before I spend them?
Yes. Publication 525 says to include the value of credit units added to your account even if you do not use them until a later year.
Does box 13 count credits I spend later?
No. The instructions exclude amounts received in a subsequent exchange of credits or scrip.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. The payer, a CPA or an enrolled agent can confirm what a box or code means for your return. Everything runs in your browser; nothing you enter is sent anywhere.