You may have received one even on modest sales. Montana requires payment processors to report at $600 — well below the federal threshold of $20,000 and 200 transactions. Whatever triggered your form, the gross it reports overstates what you actually kept.
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Montana’s state threshold ($600 with no transaction minimum) is lower than the federal rule, so a processor filed a 1099-K even if you’re under $20,000 / 200 transactions federally.
Your 1099-K reports gross payment volume — before refunds, chargebacks, processing fees, and the sales tax you merely collected. None of that is income.
Reconcile the gross to your actual income and keep the worksheet on file. TaxMatch does this across Shopify Payments, PayPal, and Stripe in minutes.
TaxMatch subtracts every documented adjustment and hands you a CPA-ready worksheet — so your return reflects what you actually earned, not the gross the IRS has on file.
TaxMatch produces a reconciliation worksheet for you and your tax professional. It is not tax or legal advice. State thresholds change — confirm your state’s current rule.