1099-K threshold by state.

The federal test, then four state tests

Public Law 119-21, section 70432, returned third-party settlement organizations to the old rule: a platform reports only if gross payments exceed $20,000 and the number of transactions exceeds 200. That applies back to calendar years beginning after December 31, 2021. States are free to ask for more, and the sources read show four that do. These thresholds decide when a platform reports to the state. They never decide whether the income is taxable, and a 1099-K is not required for you to owe tax.

Massachusetts: $600, any number of transactions

Regulation 830 CMR 62C.8.1 requires a third party settlement organization to report the gross amount paid to a payee with a Massachusetts address when it is $600 or greater, "irrespective of the number of transactions", even where there is no federal obligation. The Massachusetts Department of Revenue says its threshold stays at $600 after the federal change.

Vermont: $2,000 or more

The Vermont Department of Taxes says a third-party payment settlement organization will issue you a form if it paid you $2,000 or more in the previous calendar year, and notes the Vermont threshold has changed. It had been $600 under Act 73 of 2017. The page gives no effective date for the change.

Virginia: $600 as published, with a caveat

Tax Bulletin 20-10 told platforms to use the Form 1099-MISC threshold in IRC 6041(a), then $600, for payees with a Virginia mailing address, and Virginia Tax's public page still says $600. Federal law raised the 6041(a) threshold to $2,000 for payments after 2025. Virginia's pages read do not say whether it follows, so the tool shows $600 and flags the question.

Illinois: four or more transactions and more than $1,000

Illinois Publication 110 (January 2026) says 1099-K forms for a payee with an Illinois address must be filed electronically with Illinois if the IRS requires e-filing, or if the payee has four or more separate transactions and the cumulative total exceeds $1,000. They go through the Illinois FIRE program, not MyTax Illinois.

Other states: what we could and could not confirm

For every state not named above, TNAADO found no state-specific 1099-K threshold in the official pages read, so the tool says the federal rule applies and to confirm with the state tax agency. Third-party summaries claim lower rules in some other jurisdictions, namely DC, Maryland, Missouri, Montana, North Carolina, New Jersey, Arkansas and Mississippi. We could not confirm any of those from a state source, so the tool prints no figure for them and tells you to check with the state.

Worked example

A seller in Massachusetts receives $1,450 across 38 sales. The federal test fails because $1,450 is not over $20,000 and 38 is not over 200. The Massachusetts test passes at $600 or more, so the platform should report to Massachusetts. The same seller in Illinois meets the four-transaction and over-$1,000 test. In Vermont they fall under the $2,000 line.

What to do with a form

Treat the gross amount on a 1099-K as gross receipts, subtract genuine business costs, and report the net. Personal items sold at a loss and reimbursements are not income, as Virginia's and Vermont's pages explain.

Sources

• Public Law 119-21 (One Big Beautiful Bill Act) — sections 70432 and 70433
• 830 CMR 62C.8.1 — Massachusetts $600 test
• Vermont Department of Taxes: 1099-K — $2,000 or more
• Vermont Department of Taxes: 1099-K information reporting (2017) — the earlier $600 threshold
• Virginia Tax Bulletin 20-10 — 6041(a) threshold for platforms
• Virginia Tax: Did you receive a 1099-K? — $600 published figure
• Illinois Publication 110 (R-01/26) — four transactions and over $1,000

All figures and rules above were retrieved October 2026. Agencies revise forms and thresholds, so confirm anything that affects a sale against the current official page.

Frequently asked questions

What is the federal 1099-K threshold for 2026?

Over $20,000 in gross payments and over 200 transactions, under Public Law 119-21 section 70432.

Which state has a $600 1099-K threshold?

Massachusetts requires reporting at $600 or more with no transaction minimum. Virginia's published figure is also $600, but it is tied to a federal threshold that rose to $2,000 for 2026 payments.

Do I owe tax if I do not receive a 1099-K?

Yes if the income is taxable. The threshold only decides whether the platform reports, not whether you owe.

Is the Illinois rule a reporting threshold?

It is an electronic filing mandate for platforms: four or more separate transactions and a cumulative total over $1,000 for a payee with an Illinois address.