Source: IRS Fact Sheet 2025-08; One Big Beautiful Bill (OBBB)

Form 1099-K is issued by banks, credit card clearing houses and others such as PayPal and Zelle to recipients of funds clearing through their organization which are deemed to be business-related.

Under OBBB, the threshold for issuance by a third party settlement organization is now transactions to a payee exceeding $20,000 or 200 transactions in a year.

Senate Bill 711

IRS: For divorces executed after 12/31/2018, alimony (aka spousal support) is not income to the recipient and non-deductible to the payor.

California: Now conforms to this treatment for any divorce or separation agreement executed after 12/31/2025. For agreements executed prior to 12/31/2025, spousal support is a deduction on the CA return of the payor and income on the return of the recipient.