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Forms 1099-K, -NEC & -MISC Reporting

So, if a business pays a vendor with a credit card is the business required to issue the vendor a 1099 since the credit card company will be issuing the business a 1099-K for the income and issuing a 1099 would be doubling up the income.  This is from the 2022 1099 instructions for 1099-NEC and 1099-MISC:

Form 1099-K: Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099MISC or 1099-NEC.    


Beginning with tax year 2022 if someone receives payment for goods and services through a third-party payment network, their income will be reported on Form 1099-K if $600 or more was processed, regardless of the number of transactions, as opposed to the 2021 and prior Form 1099-K reporting requirement of 200 transactions and $20,000. This change could impact people working in the gig economy, online sellers, independent contractors, and other self-employed business owners.    

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