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February 2, 2025
Question

For Tax Year 2025 If a Company pays with Paypal and sends 1099-NEC each year. What will happen when issued 1099-K for same amount?

  • February 2, 2025
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For Tax Year 2025 If a Company pays with Paypal and sends 1099-NEC each year. What will happen when issued 1099-K for same amount?

1 reply

February 2, 2025

If your clients pay you through PayPal or Venmo or by credit or debit card, they do not have, and should not issue you form NEC.

 

You'll receive a form 1099-K from PayPal or Venmo or the credit or debit card issuer.

 

Please see this QuickbooksHelp article.

 

If you receive such forms 1099-NEC, you should ask your clients to cancel them and report the cancellation with the IRS.

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