If you get paid electronically for a side hustle, small business, or the sale of items online, you might need to pay taxes on that income. Payment apps and online marketplaces issue a Form 1099-K, informing you and the IRS if you’re paid more than $600 in a year. If you make a profit through these activities, it’s considered taxable income. You can use the Form 1099-K, along with other records, to determine how much tax you owe.

This should not apply if you get money from someone as a gift, reimbursement, or repayment of other personal expenses. That money is not taxable. When possible, note these transactions as personal on apps and websites. Remember that all income, no matter the amount, is taxable unless the tax law says otherwise – even if you don’t get a Form 1099-K.

Good recordkeeping throughout the year will help you when it comes time to file your tax return.

For more information – including what to do if you get a Form 1099-K in error or the information on your form is incorrect – visit IRS.gov/1099K.