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IRS announces another delay of the $600 reporting threshold for Form 1099-K
In some excellent news for millions of eBay sellers, the Internal Revenue Service (IRS) announced another delay of the $600 reporting threshold for Form 1099-K.
As a result, for tax year 2023, only eBay sellers who exceed the current reporting threshold of $20,000 and 200 transactions, had backup withholding applied in 2023, or are residents of states that have a lower reporting threshold will receive a Form 1099-K. For tax year 2024, the IRS announced plans for a $5,000 reporting threshold. We expect further guidance on the tax year 2024 and beyond in the coming months and will keep you in the loop.
We’ll continue to advocate on your behalf
This additional delay of the $600 tax reporting threshold follows more than two years of eBay Government Relations advocacy on your behalf. We want to thank members of our eBay Main Street community who made their voices heard on this important issue. While another delay is welcome news for millions of online sellers, we’ll continue to advocate for Congress to enact a permanent solution to reduce confusion and prevent burdensome and unnecessary reporting requirements in the future.
We’re giving you the resources you need to meet your tax filing requirements
To help you to navigate your tax responsibilities, if you receive a Form 1099-K this January for tax year 2023 we’ll provide a guide to help you understand which reports you’ll need to file your taxes. Our guide walks you through where to download your Form 1099-K, as well as refunds and expenses on eBay. In addition, eBay and TaxAct®, a leading DIY tax preparation service, have partnered to help you understand your tax obligations.
Read 1099-K and Tax Withholding FAQs for more information.
As always, we'll continue to keep you up to date with any changes to these tax requirements.
Thank you for being a part of the eBay community.
Disclaimers:
eBay and its affiliates do not provide legal, tax, or accounting advice. This material is being provided for informational purposes only and is not intended as, and should not be relied upon for, legal, tax, accounting, or other professional advice. Please consult your own legal, tax, and accounting advisors for advice specific to your situation. All TaxAct offers, products and services are subject to applicable terms and conditions.
TaxAct Xpert Assist is available as an added service at no charge for TaxAct’s online, consumer-prepared 1040 and sole proprietor products. Service hours limited to hours of operation and by expert availability. Some tax topics or situations may not be included as part of this service. View full TaxAct Xpert Assist Terms and Conditions.
