In 2022, the IRS updated the thresholds for receiving a 1099-K via the American Rescue Plan Act, but then reverted those updated thresholds in 2025 via the One Big Beautiful Bill Act (OBBBA). This constantly changing landscape has confused many users since 2022.
Types of 1099 Tax Forms
The 1099-K Form issuance can be particularly confusing for referees, umpires, and officiating organizations who don't realize that there are multiple different types of "1099" tax forms. The IRS has more than 20 different types of 1099 tax forms, each with a distinct purpose and its own eligibility thresholds. Many referees are accustomed to receiving at least one of these types of 1099 tax forms, and may not know that others exist.
The two most common 1099 tax forms that people in the officiating community should be familiar with are:
1099-NEC Tax Form: This form is commonly issued by officiating organizations to their officials when they earn more than $600 in a year. Officiating organizations must still continue to comply with this, regardless of the 1099-K process.
1099-K Tax Form: This form is issued by payment transaction networks like Dwolla, Venmo, Cash, PayPal, Square, etc., when you receive money via their payment network. Eligibility thresholds are listed below. Users may be required to receive a 1099-K tax form from Dwolla, Inc., which reports on earnings received via a financial network like the Horizon Payment Center. Dwolla, Inc. is a third-party company that operates and performs all the financial transactions made with the Horizon Payment Center. The 1099-K tax form has existed for many years, but it feels new to many people in the "gig" work community, like referees and umpires, due to a recent push by state and federal governments to lower the eligibility thresholds.
What is a 1099-K tax form?
A 1099-K tax form indicates payment earnings that have passed through a third-party financial network like the Horizon Payment Center. They are issued by credit card and ACH processing companies like Dwolla, Venmo, Cash, PayPal, Square, etc., to report on financial earnings that have passed through their processing networks. This form is not the same as a 1099-MISC or a 1099-NEC tax form, which officials commonly receive from officiating organizations. These tax forms are completely different and may reflect the exact same earnings in all of these tax forms.
Who is Dwolla Inc.?
Dwolla Inc. is a third-party financial processor that operates the ACH bank transfer functionality of the Horizon Payment Center. Any payment transaction processed through the Horizon Payment Center is processed and handled by Dwolla Inc. As a financial network provider, they have both federal & state reporting requirements to indicate and disclose funds that pass through their processing network. This information is reported via tax Form 1099-K.
I already received a 1099. Why am I getting another one?
A 1099-K tax form is not the same as a 1099-MISC or a 1099-NEC tax form, which officials commonly receive from officiating organizations. These tax forms are completely different and may reflect the same earnings in multiple reports. There are over 20 different types of 1099 tax forms.
If you've earned enough money, both your officiating organization AND Dwolla Inc. will be required to send you tax forms regarding those same funds. A 1099-K form does not replace your officiating organization's requirements to send you a 1099-MISC or 1099-NEC tax form. Your officiating organization may send you a 1099-MISC, 1099-NEC, or W-2 tax form, and Dwolla Inc. will also send you a 1099-K tax form for the exact same funds if you meet the reporting thresholds shown below.
Both the federal and state Form 1099-K are informational returns, and the gross payments reported on a Form 1099-K do not necessarily represent reportable income. The form should be used in conjunction with other tax records (bank statements, invoices, etc.) to report taxable income, if any. Please consult your tax advisor to determine your tax reporting requirements.
Who receives a 1099-K tax form?
To receive a 1099-K tax form from Dwolla, Inc., you must have received payments via the Horizon Payment Center and meet the following conditions:
You have received payments during the calendar year that exceed the federal IRS threshold.
This threshold used to be much higher, but the IRS recently lowered it via the American Rescue Plan of 2021, so many more users will now receive 1099-K tax forms. In 2022, the IRS originally intended to reduce the threshold immediately from $20,000 down to $600. However, they've adopted a more phased-in approach based on their recent guidance.
Note: On July 4, 2025, the US passed the "One Big Beautiful Bill Act" (OBBBA), which will revert the 1099-K thresholds back to pre-2024 levels of $20,000 and 200 transactions. This reversion has been retroactively applied back to 2022.
The previously enforced thresholds that were scheduled to phase in were:
2022 Tax Year: $20,000 or more in earnings and over 200 transactions.
2023 Tax Year: $20,000 or more in earnings and over 200 transactions.
2024 Tax Year: $5,000 or more in earnings
2025 Tax Year: $2,500 or more in earnings
2026 Tax Year and Beyond: $600 or more in earnings
These phase-in thresholds will no longer take effect, and the IRS will now only require 1099-K Forms when earning above $20,000 and more than 200 transactions. This is the federal threshold.
State Thresholds: It's important to note that many states in the US have lower thresholds that may still trigger 1099-K form generation if users live in a state with a lower threshold than the federal threshold.
In addition to federal IRS thresholds that trigger the issuance of a 1099-K tax form, some individual states also have stricter rules for when a 1099-K tax form must be issued to an individual. If the state you reside in has one of these stricter rules, you may also be eligible to receive a 1099-K from Dwolla Inc.
What do I do with this?
Both the federal and state Form 1099-K are informational returns, and the gross payments reported on a Form 1099-K do not necessarily represent reportable income. The form should be used in conjunction with other tax forms (like W-2's, 1099-MISC, and 1099-NEC forms) and tax records (bank statements, invoices, etc.) to determine your taxable income. You should consult your tax advisor to determine your tax reporting requirements.
Does the 1099-K replace my officiating organization's reporting requirements?
No. A 1099-K form is entirely separate. Officiating organizations are still required to comply with state & federal reporting thresholds for W-2, 1099-NEC, and/or 1099-MISC tax forms. A 1099-K tax form does not replace this reporting requirement. You should consult your tax advisor to determine your tax reporting requirements.