State 1099-K Thresholds That Are Lower Than the Federal Limit

Five US jurisdictions publish a 1099-K threshold below the federal $20,000 and more than 200 transactions rule: Rhode Island at $100, Massachusetts and Virginia at $600, Illinois at $1,000 across four or more transactions, and Vermont at $2,000. A lower threshold changes when a form is issued, not how much tax is owed.

Maryland supplies a sixth lower figure by state statute rather than by publishing a dollar amount: its statute cross-references IRC § 6041(a), which is $600 for payments through December 31, 2025 and $2,000 for payments after that date (Md. Code, Tax-General § 10-825). Four more jurisdictions — Montana, Washington D.C., New Jersey, and Arkansas — appear at lower figures only in payment-processor filing tables (Stripe, last checked September 2026) that no state-published page confirms.

A 1099-K threshold is a paperwork trigger, not a tax rule. It decides when a payment processor has to send you, and the state or the IRS, a form — not whether the underlying income is taxable. The federal 1099-K threshold explained covers the federal $20,000 and more than 200 transactions rule in detail; this page covers the states that layer a lower number on top of that rule, names the authority behind each figure, separates the one state-statutory figure from the state-published ones, and flags the four figures that no state authority appears to publish.

Which states set a 1099-K threshold below the federal rule?

Five US jurisdictions publish a fixed 1099-K dollar threshold below the federal $20,000 and more than 200 transactions floor: Rhode Island at $100, Massachusetts and Virginia at $600, Illinois at $1,000 with four transactions, and Vermont at $2,000. Maryland sets its threshold by statutory cross-reference to IRC § 6041(a). Montana, D.C., New Jersey, and Arkansas appear lower only in processor tables.

The IRS confirms that a state rule can produce a form the federal rule would not. "Your state may have a lower reporting threshold for TPSOs, which could result in you receiving a Form 1099-K, even if the total gross payments and transactions did not exceed the federal reporting threshold," states the IRS in Form 1099-K FAQs: General Information, question 2, updated October 23, 2025.

The first table below carries only figures this article traced to a live state-published or state-statutory source, with the tax-year scope each source states. Maryland is the one entry whose number comes from a statute rather than from a dollar amount the state itself publishes.

Stripe is the processor publishing the four remaining figures, and it publishes them twice. The Stripe Connect 1099-K state requirements table lists a filing threshold of $600 for Montana, $600 for the District of Columbia, $1,000 for New Jersey, and $2,500 for Arkansas (Stripe, 1099-K form state requirements). Stripe's taxpayer guide "IRS Form 1099-K: What to know", last updated June 9, 2026, repeats the same four figures and groups Montana and the District of Columbia with Maryland, Massachusetts, Vermont, and Virginia at "$600 in gross volume, with no minimum transaction threshold". That same Stripe guide still lists Vermont and Maryland at $600, which is one reason to read processor tables as guidance rather than law: the Vermont Department of Taxes now publishes $2,000, and Maryland's statutory figure moved to $2,000 for payments after December 31, 2025. The second table holds those four figures, none of which this article could trace to a state-published page; treat every number in it as processor-reported until the state confirms it.

What is the federal 1099-K threshold right now?

The federal 1099-K threshold is $20,000 in gross payments and more than 200 transactions in a calendar year, applied separately by each third-party settlement organization. Congress restored that figure in the One Big Beautiful Bill Act after a $600 threshold was delayed several times and then reversed. State thresholds sit on top of the federal rule rather than replacing it.

The IRS states that "third party settlement organizations are not required to file Forms 1099-K unless the gross amount of reportable payment transactions to a payee exceeds $20,000 and the number of transactions exceeds 200," in a newsroom release dated October 2025 that governs Forms 1099-K for tax year 2025 and, absent further legislation, later years (IRS). For the full mechanics of the federal rule, including why crossing it does not itself create a tax bill, see the 1099-K threshold for creators explained.

A creator can clear a state's $600 threshold, receive a 1099-K from a processor for state purposes, and still be nowhere near the $20,000 figure the IRS uses for its own federal filing requirement. The two rules run in parallel rather than one overriding the other. The federal $20,000 and more than 200 transactions rule governs the federal filing obligation of a third-party settlement organization (IRS); a lower state threshold can separately oblige a processor to report to that state and to furnish the payee a copy; and a merchant acquiring entity settling payment card transactions files with no de minimis threshold at all (IRS Form 1099-K FAQs). In practice the lowest applicable figure across those three routes is what decides whether a form reaches you — but it is the state rule or the card-network rule doing that work, not a reduction of the federal threshold.

Which states publish a flat $600 1099-K threshold?

Massachusetts and Virginia are the only two US jurisdictions publishing a flat $600 1099-K threshold with no transaction minimum on a live state source. A single $600 payment to a Massachusetts or Virginia payee, or twelve payments of $50, triggers the form in either state. Maryland reaches $600 only by statute, and only for payments made on or before December 31, 2025.

Massachusetts regulation 830 CMR 62C.8.1 requires a third-party settlement organization to file when payments to a Massachusetts payee reach $600 in a calendar year, regardless of the number of transactions. Virginia Tax Bulletin 20-10 sets the Virginia figure at payments of $600 or more in a taxable year to a payee with a Virginia mailing address, effective for transactions on or after January 1, 2020.

Virginia's $600 is set directly by the Department under Va. Code § 58.1-356 rather than by cross-reference to the federal IRC § 6041(a) figure, so the 2026 federal increase does not mechanically move it. The Virginia Tax taxpayer page still states that TPSOs must send a Form 1099-K to a Virginia mailing address when they pay $600 or more in the previous calendar year. Because neither Massachusetts nor Virginia sets a transaction-count floor, the dollar amount alone decides whether a Form 1099-K is issued in those two states.

Which lower thresholds are moving to $2,000?

Maryland and Vermont are the two lower-threshold US jurisdictions whose operative 1099-K figure is now $2,000 rather than $600. Maryland's statute pegs its threshold to IRC § 6041(a), which Congress raised from $600 to $2,000 for payments made after December 31, 2025. Vermont's Department of Taxes already publishes $2,000 on its own current 1099-K page.

Md. Code, Tax-General § 10-825(b) requires a third-party settlement organization to report to the Comptroller when reportable payment transactions "meet or exceed the filing threshold under § 6041(a) of the Internal Revenue Code" (Maryland General Assembly). The IRS states that "OBBBA section 70433(a) increased the $600 threshold in section 6041 to a base threshold of $2,000 for payments made after December 31, 2025," in Internal Revenue Bulletin 2026-19 (IRS). Maryland's operative number is therefore $600 for payments made on or before December 31, 2025, and $2,000 for payments made after that date.

Vermont's operative number today is $2,000, not the $600 that older summaries still repeat. The Vermont Department of Taxes 1099-K Notices FAQ states that a recipient received the form because a TPSO paid $2,000 or more in the previous calendar year.

"You received Form 1099-K because a third-party payment settlement organization (TPSO) paid $2,000 or more to you in the previous calendar year. You may not have received one previously because the threshold for reporting in Vermont has changed." — Vermont Department of Taxes, 1099-K Notices FAQ

The $600 Vermont figure is historical and statutory, not the number the Department currently applies: Act 73 of 2017 set the threshold under 32 V.S.A. § 5862d at $600, announced in a Vermont Department of Taxes press release dated December 19, 2017. The Department's current FAQ does not name the tax year in which $2,000 took effect, so a Vermont creator should confirm the operative year with the Department before filing rather than assuming either figure.

What do Illinois and Rhode Island require?

Illinois requires a 1099-K when a payee has four or more separate transactions and a cumulative total over $1,000, making Illinois the only lower-threshold US jurisdiction that pairs a reduced dollar figure with its own transaction minimum. Rhode Island requires a Form 1099 at income over $100, the lowest figure of any US state reviewed on this page.

The Illinois Department of Revenue requires electronic submission of Forms 1099-K issued to a payee with an Illinois address when the IRS requires e-filing "or the payee has four or more separate transactions, and the cumulative total exceeds $1,000". Because Illinois pairs its figure with a transaction count, an Illinois creator could take one $1,200 payment and stay under the Illinois rule if that payment is the year's only transaction — a distinction that does not apply in Massachusetts or Virginia, where no transaction count applies.

Rhode Island's $100 is not a 1099-K carve-out at all. The Rhode Island Division of Taxation set a general Form 1099 filing rule at income greater than $100 effective for tax year 2025, announced in Advisory ADV 2026-05 dated February 19, 2026 and grounded in R.I. Gen. Laws § 44-30-58(c) (Rhode Island Division of Taxation).

"For tax years prior to Tax Year 2025, the Division has only required the filing of Form 1099 when Rhode Island withholding was reflected on the form. However, beginning with Tax Year 2025, the issuer is required to file Form 1099 with the Division if income greater than $100 is reported." — Rhode Island Division of Taxation, ADV 2026-05, February 19, 2026

Which four figures come from processors rather than states?

Montana at $600, Washington D.C. at $600, New Jersey at $1,000, and Arkansas at $2,500 are four widely repeated 1099-K figures with no state-published source. All four appear in the Stripe Connect 1099-K state requirements table and in Stripe's June 9, 2026 taxpayer guide. Treat all four as processor-reported rather than settled state law.

The state pages that do exist for these four jurisdictions publish filing mechanics without a 1099-K dollar figure. The Montana Department of Revenue lists Form 1099-K among the forms due February 28 on paper and April 1 electronically, and states that "Montana follows federal due dates for Forms 1099 that do not have withholding," with no dollar threshold anywhere on the page. The New Jersey Division of Taxation mandates electronic filing of "Forms NJ-W-3, W-2, W-2G, 1094/1095, and all 1099s" and names no dollar figure at all (NJ Division of Taxation).

Because the sources conflict, the honest answer for these four is that the threshold varies by whose table you read. A creator registered in Montana, D.C., New Jersey, or Arkansas should confirm the current figure directly with the Montana Department of Revenue, the DC Office of Tax and Revenue, the New Jersey Division of Taxation, or the Arkansas Department of Finance and Administration before treating any number as authoritative.

What do the other 41 jurisdictions require?

The other 41 US jurisdictions fall into three groups on Stripe's published 1099-K state table rather than one: 13 carry a filing threshold of "Same as IRS", 12 require a 1099-K only when state tax was withheld, and 16 have no state 1099-K filing requirement listed. Those counts and every name below are processor guidance, not state law.

Every entry in the table below is drawn from a single named processor source, the Stripe Connect 1099-K state requirements table, which lists a filing threshold for all 51 US jurisdictions. Because it is processor guidance rather than state law, each entry should be checked against the relevant state revenue department before it is relied on.

The three groups above are why "every other state matches federal" is not accurate: only 13 of the 41 remaining US jurisdictions carry the federal figure on the Stripe table, while 28 either sit at $0 once state tax is withheld or are listed with no 1099-K filing requirement at all.

The processor publishing those groupings says directly that they may change. Stripe warns that "some participating State regulatory agencies haven't fully finalized filing requirements and requirements remain subject to change for the 2025 tax season".

Does a state threshold apply per processor or to total income?

A 1099-K threshold is applied by each filer to the payments that filer settled, not to a creator's combined income across platforms. IRC § 6050W builds federal reporting that way, and the state rules here attach to those same reports. Nothing in IRC § 6050W or in the state sources cited on this page directs one processor to count another's payments.

The current IRS Instructions for Form 1099-K — published on IRS.gov under the revision label 12/2026, with the PDF posted May 28, 2026 — state that "Every PSE or other party which submits instructions to transfer funds to the account of a participating payee, in settlement of reportable payment transactions, must file an information return (Form 1099-K) with respect to each participating payee for that calendar year". The obligation therefore sits with each settlement entity individually; the same instructions add that where two or more persons qualify as PSEs for the same transaction, the PSE that submits the instruction to transfer funds is the one that files. The IRS separately notes that a payee can receive several forms from several entities: "you may receive a Form 1099-K from other payment settlement entities, such as merchant acquiring entities, because they do not have a de minimis reporting threshold" (IRS Form 1099-K FAQs). Card-network payments carry no de minimis floor at all, so a payee receiving $0.01 through a payment card transaction should receive a Form 1099-K for it.

A creator registered in Massachusetts could take $500 through one processor and $700 through another in the same year and stay under the Massachusetts $600 figure on each individual account, even though the year's total is $1,200. Whether a form was issued is a separate question from whether the $1,200 is taxable, because the $1,200 is taxable either way.

Does a lower threshold mean you owe more tax?

No. A 1099-K threshold, state or federal, controls only when a processor must send a reporting form. A lower state threshold produces a form, not a new tax obligation. Income earned below a state's $100, $600, $1,000, or $2,000 figure is fully taxable already; it simply will not generate a form from that processor account.

"The Form 1099-K reporting threshold doesn't affect whether payments are taxable or whether a tax return must be filed. All income, no matter the amount, is taxable unless the tax law says it isn't — even if you don't get a Form 1099-K." — IRS, Form 1099-K FAQs: General Information, question 7

The same principle appears on the IRS taxpayer-facing page: "whether or not you receive a Form 1099-K, you must still report any income on your tax return". The Vermont Department of Taxes makes the identical point about its own notices, stating that a 1099-K notice "is not associated with any new tax".

How do state 1099-K thresholds apply to FanBell earnings?

FanBell payments run on Stripe — see how a Stripe payout compares to Cash App or Venmo — so the state-by-state 1099-K rules described on this page apply to a FanBell creator whose payment account is registered in one of the lower-threshold jurisdictions, on top of the federal $20,000 and more than 200 transactions rule. FanBell does not set, waive, or adjust any state reporting threshold.

FanBell charges no monthly fee and applies a 12% platform fee only when a fan actually pays (FanBell pricing), and creators are paid out through their own connected Stripe account (how FanBell works). FanBell creators set their own prices, so any dollar amount in this section is a purely hypothetical illustration rather than a FanBell-published price or a typical earning figure. On hypothetical payments of $10 to $50 each, a creator accumulating Tips or Paid Private Questions would cross a $100 or $600 state threshold well before approaching the federal $20,000 figure — particularly in Rhode Island, Massachusetts, or Virginia, where no transaction-count floor also has to be cleared. Any pricing example here is illustrative only, not a guarantee of earnings.

One number worth understanding before a form arrives: a 1099-K reports gross payments, not what landed in your bank account. For how the 12% platform fee and Stripe's processing cost sit inside that gross figure, see creator platform fees explained.

What should you do in a lower-threshold state?

Find out which state your payment account is registered in, then treat that state's published figure — not the federal $20,000 — as the number that decides whether a form arrives. Where no state page publishes a figure, confirm it with the state revenue department rather than a processor table. Keep a running record of gross payments either way.

The table below splits the remaining 41 US jurisdictions into the three groups Stripe actually lists rather than treating them as one federal-threshold bucket: 13 at "Same as IRS", 12 that require a 1099-K only once state tax has been withheld, and 16 with no state 1099-K filing requirement listed. Every row citing Stripe is processor guidance, not state law.

A creator who treats "I'm way under $20,000" as equivalent to "I owe nothing yet" is working from the wrong number for the wrong purpose. The underlying income is taxable regardless of any threshold, so the more useful habit is tracking gross payments and fees as they happen — see the best way to keep records of creator earnings — rather than waiting to see whether a form shows up. If income is growing steadily, it is also worth checking whether you should be paying quarterly estimated taxes instead of settling everything in April.

None of this substitutes for advice from a tax professional familiar with your state and filing history. State 1099-K rules changed multiple times between 2020 and 2026, and Maryland and Vermont are mid-change right now.

Frequently asked questions

Five US jurisdictions publish a 1099-K dollar threshold below the federal $20,000 and more than 200 transactions rule: Rhode Island at $100, Massachusetts and Virginia at $600, Illinois at $1,000 across four transactions, and Vermont at $2,000. Maryland derives a sixth from statute. Four further figures are processor-reported only. No threshold, state or federal, changes how much tax is owed.

Which states have a 1099-K threshold below the federal $20,000 rule?

Five jurisdictions publish a dollar figure on a state source, and Maryland adds a sixth by statute. Rhode Island requires a Form 1099 at income over $100 beginning tax year 2025; Massachusetts and Virginia sit at $600; Illinois requires a 1099-K at four or more transactions totalling over $1,000; Vermont publishes $2,000. Maryland does not publish a figure at all — its statute cross-references IRC § 6041(a), which is $2,000 for payments after December 31, 2025. Montana, D.C., New Jersey, and Arkansas are cited at lower figures by Stripe but not by any state page located here.

Which state has the lowest 1099-K threshold?

Rhode Island, at income over $100 with no transaction minimum. That figure comes from a general Form 1099 filing change effective for tax year 2025 under R.I. Gen. Laws § 44-30-58(c), announced in Advisory ADV 2026-05 dated February 19, 2026, and it applies to all 1099 types rather than to Form 1099-K alone (Rhode Island Division of Taxation).

Is Vermont's 1099-K threshold $600 or $2,000?

The operative figure on current Vermont guidance is $2,000. The Vermont Department of Taxes 1099-K Notices FAQ states that a TPSO paying an individual $2,000 or more will issue a 1099-K, while $600 is the older statutory figure set by Act 73 of 2017 under 32 V.S.A. § 5862d. The Department does not state the tax year in which $2,000 took effect, so confirm the operative year with the Department.

Is Maryland's 1099-K threshold still $600?

Maryland does not fix $600 in its own statute. Md. Code, Tax-General § 10-825(b) ties the state threshold to IRC § 6041(a), and the IRS confirms that OBBBA section 70433(a) raised the § 6041 base threshold from $600 to $2,000 for payments made after December 31, 2025 (Internal Revenue Bulletin 2026-19). Maryland's figure is therefore $600 for payments through December 31, 2025 and $2,000 after that date.

Does New Jersey really have a $1,000 1099-K threshold?

That figure is processor-reported, not state-verified. Payment processors and filing services list New Jersey at $1,000, but the New Jersey Division of Taxation's electronic filing mandate names the forms covered without naming any dollar threshold (NJ Division of Taxation). Confirm the current figure with the New Jersey Division of Taxation before relying on it.

Does a low state threshold mean I owe more tax than someone in another state?

No. A 1099-K threshold, state or federal, decides only when a processor must send a reporting form; it produces a form, not a new tax obligation. All taxable income must be reported regardless of which state you are in and regardless of whether any 1099-K was issued.

Does FanBell issue a different 1099-K depending on my state?

FanBell does not issue the form. Payments run through Stripe, and Stripe applies whichever threshold — federal or the relevant state's — attaches to your registered payout account. The dollar figure that triggers your form can be far below $20,000 if your account is registered in Rhode Island, Massachusetts, Virginia, Illinois, Maryland, or Vermont.

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