Are nonresidents subject to tax if they receive a Form 1099-K?
💳 Form 1099-K tax guide for international students and nonresidents in the US
If you’ve received a Form 1099-K from the IRS, you might be wondering what it means for your tax obligations in the US.
This document, known as Payment Card and Third-Party Network Transactions, reports income received through digital platforms such as PayPal, Venmo, or Zelle.
Many nonresidents — including international students — now receive 1099-K forms, so let’s go through what it means and what to do next.
📘 What is a Form 1099-K?
Form 1099-K reports income received via credit/debit card or third-party payment networks.
It’s part of the IRS’s 1099 series, which records non-salary income that isn’t included in a W-2 form.
If you received money through online sales, freelance services, or digital transactions, this form reports that income to the IRS.
💡 Why did I receive a 1099-K?
You likely received a 1099-K if you accepted payments from:
-
PayPal, Venmo, Zelle, Stripe, or similar platforms
-
Online marketplaces like eBay, Etsy, or Amazon
-
Cryptocurrency exchanges such as Coinbase or Crypto.com
For 2025, you’ll get this form if your total payments exceeded $600 (previously $20,000 and 200 transactions).
Even if you didn’t receive a 1099-K, you’re still required to report all taxable income to the IRS.
💰 Is 1099-K income taxable?
Yes — in most cases, income reported on Form 1099-K is taxable.
You must include it on your Form 1040-NR when filing your nonresident tax return.
✅ Taxable examples:
-
Freelance or gig income
-
Business income
-
Cryptocurrency gains
-
Payments for services
🚫 Non-taxable examples:
-
Selling used personal items for less than their original price
-
Reimbursed shared expenses (like splitting rent or bills)
🪙 Did you earn crypto income?
If you received income from cryptocurrency trading or transfers through platforms like Coinbase, you may receive a 1099-K if your transactions exceed the reporting threshold.
Crypto transactions are considered taxable events, even for nonresidents, and must be reported accurately to the IRS.
📄 Other types of 1099 forms
The IRS issues many types of 1099 forms, each for a specific income type:
| Form | Purpose |
|---|---|
| 1099-DIV | Reports dividends or investment distributions |
| 1099-NEC | Reports freelance or contractor income ($600+) |
| 1099-INT | Reports bank or investment interest income |
| 1099-MISC | Reports miscellaneous income like prizes or rent |
Each form must be reported on your tax return if received.
🧾 What should I do with my 1099-K?
Keep it safe and include the income it reports when you file your 2024 tax return by April 15, 2025.
If you’re unsure how to include it, or if your income came from multiple platforms, it’s best to use a professional filing service.
⚠️ What if I don’t include my 1099-K on my tax return?
If you omit your 1099-K income:
-
The IRS will likely detect it, since they also receive a copy.
-
You may face penalties, interest, or future visa complications.
It’s always better to stay compliant — even if your income was small.
🧮 How J1 Summer Tax Back can help
Filing nonresident taxes doesn’t have to be complicated.
Our tax experts ensure:
✅ You report your 1099-K income correctly
✅ You avoid overpaying
✅ You remain fully compliant with the IRS
We’ll guide you through every step — from determining residency to filing your Form 1040-NR — so you can file with confidence.
🚀 Start your nonresident tax filing today with J1 Summer Tax Back
Stay compliant. Stay stress-free.