1099-K 20k is only for Federal. Payment processers may still issue 1099-K if it is less, for certian states.
https://www.paypal.com/us/cshelp/ar...9-k-reporting-thresholds-2025-update-help1131
https://www.paypal.com/us/cshelp/ar...9-k-reporting-thresholds-2025-update-help1131