U.S. · Tax forms
1099-K box 1b, card-not-present transactions.
Which of your sales count as keyed-in or online.
Box 1b of Form 1099-K is the gross amount of reportable payment card and third party network transactions for the year where the card was not present at the time of the transaction or the card number was keyed into the terminal. The instructions say this typically relates to online sales, phone sales or catalogue sales.
Is a sale card-not-present?
Result
The definition in the instructions
Enter in box 1b the gross amount of the total reportable payment card and third party network transactions for the calendar year where the card was not present at the time of the transaction or the card number was keyed into the terminal. Typically, the instructions say, this relates to online sales, phone sales or catalogue sales.
Measured gross, like box 1a
“Gross amount” here has the same meaning as in box 1a: the total dollar amount of total reportable payment transactions for each participating payee without regard to any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts, shipping amounts or any other amounts. Each transaction is valued on the date of the transaction. A refund therefore does not shrink box 1b.
Classifying your sales
| How the sale was taken | Card not present? |
|---|---|
| Online checkout | Yes (instructions: online sales) |
| Order taken by phone | Yes (instructions: phone sales) |
| Catalogue or mail order | Yes (instructions: catalogue sales) |
| Card number typed into the terminal | Yes (instructions: card number keyed in) |
| Customer present and the physical card read by the terminal | No, the card was present |
The last row is the converse of the definition. The instructions do not list in-person methods individually, so ask your processor how it classifies a specific mix of methods.
Why a seller cares
Box 1b separates the part of your gross that came through remote or keyed-in sales from the rest of box 1a. It does not change what you owe by itself, but it is the number to check against your own online and phone sales records when a statement looks wrong. The filer is the payment settlement entity or third party settlement organization, so a discrepancy goes back to the filer.
Worked example
A bakery sells $18,000 across the counter with the card present, $6,500 through its website and $1,200 by phone with the numbers typed into the terminal. The filer reports box 1a of $25,700 and box 1b of $7,700, because the website sales and keyed phone sales are card-not-present.
Related decoders
More 1099 box pages: 1099-NEC box 1, nonemployee compensation, 1099-MISC box 14 and excess golden parachute payments, 1099-MISC box 2, royalties, 1099-MISC box 12, section 409A deferrals, 1099-MISC box 15, nonqualified deferred compensation. For the 1099-R box 7 codes see the 1099-R distribution codes lookup.
Sources
- Instructions for Form 1099-K (12/2026): the box-by-box section for this form. Read November 2, 2026. The IRS page was last reviewed June 1, 2026 and labels the instructions 12/2026.
Edition read: Instructions for Form 1099-K (12/2026). This page summarizes the instructions and does not replace them.
Frequently asked questions
What is box 1b on a 1099-K?
The gross amount of reportable payment card and third party network transactions for the year where the card was not present or the card number was keyed into the terminal.
What counts as card not present?
The instructions say typically online sales, phone sales or catalogue sales, and transactions where the card number was keyed into the terminal.
Is box 1b additional income on top of box 1a?
The instructions define box 1a as the gross total and box 1b as the card-not-present gross. They do not say to add them, so do not treat 1b as a separate extra amount without checking the filer’s statement.
Does box 1b subtract refunds?
No. It is measured gross, without regard to credits, discounts, fees, refunded amounts, shipping or any other amounts.
Who fixes a wrong box 1b?
The filer, which is the payment settlement entity or third party settlement organization named on the form. Ask them for a corrected form.
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 means for your return. Everything runs in your browser; nothing you enter is sent anywhere.