1099-K is for cash receipts greater than $600.
Why you are receiving one:
Starting in 2023, businesses must report any cash transactions totaling more than $600 to the IRS. As a taxpayer, you will most likely receive a form 1099-K reporting this information. The reporting requirement includes non-income-related transactions like Venmo.
Initially, this was supposed to take effect in 2022, but the IRS extended the deadline. The IRS sent notice so late that most companies were already planning on reporting this information. They might issue your 1099-K even though they aren’t required.
What to do:
The IRS hasn’t given specific guidance about what to do if you receive a 1099-K for something that isn’t income. In general, income that isn’t taxable (like receiving a small gift) does not get reported on your tax return and doesn’t affect your income taxes. In the future, the IRS may require reporting non-taxable transactions, but for now, the best bet is to only include taxable income or income requiring special reporting.
Where to get updated information
You can get more information directly from the IRS at: https://www.irs.gov/businesses/understanding-your-form-1099-k