Received 1099k form for 2021, but the money I received are gifts and survey payment

[Almostsalad]

So I just got an email that I have a 1099k form for 2021. I received gifts through ko-fi from friends (through credit card, so PayPal always took a percentage) and survey payments. The total for 2021 was about 1k and only 32 transactions on the 1099k form. Do I need to do anything for this? I’ve been trying to read online but can’t get a clear answer.

[sharpiemarker]

@Almostsalad 

The nature of the Ko-fi platform is that it specializes in donations. Ko-fi distributed the money as goods and services payments where you are paying fees to receive the payments. Same with the survey platform(s) you used if you were charged PayPal fees and they were included on the 1099-k.

Talk to a tax professional on how to include it in your income taxes.

Some states (VT, MA, VA, IL, MD) have reporting obligations at a threshold lower than the federal reporting thresholds of $20k/200 transactions for calendar year 2021:

• Vermont, Massachusetts, Virginia, and Maryland: $600 USD in gross payment volume from sales of goods or services in a single calendar year regardless of the number of transactions.
• Illinois: $1,000 USD in gross payment volume of goods or services in a single calendar year with at least 4 payment transactions processed.

Note that the federal threshold is lowered to $600 for calendar year 2022.

[Almostsalad]

Okay, so I would have to explain that the ko-fi payments were gifts rather than paying for a service as they did not receive anything back or expected to receive anything? I assume now ko-fi may not be the best way to give gifts, though the only reason they did so was not wanting to sign up for PayPal. PayPal did not take anything from the survey payments I received.