Big beautiful bill
Was wondering with the new big beautiful bill passed I have some people posted on you tube that the selling limits is now 20,000 before you get a 1099 form .. I looked on eBay it is still saying 2,500.
Can someone tell me if it has changed to the 20,000
Thanks
Joann
16 comments
lacemaker3
·1 year ago@jgraese:
No changes have been announced for 2025. We probably won't see anything relating to 2025 until late November or December, if then. Based on the IRS announcements for the past several years.
erkevin
·1 year agoYou are reading this wrong. The reporting requirements begin in 2026, but they are for the 2025 tax year. Here is a paragraph that you missed from the same article you linked:
Did the Big Beautiful Bill pass?
Update July 4, 2025:
Both chambers of Congress have now agreed on the final version of the One Big Beautiful Bill, and the president has signed it into law. This means the new tax rules are official and will kick in starting with your 2025 taxes.
erkevin
·1 year agoHere is further confirmation from H&R Block's website:
Form 1099-K reporting threshold
Effective: 2025 and beyond
If you receive payments from third-party apps or platforms, you may be aware that the rules have changed in recent years. Starting in 2025 and beyond, those entities are only required to send you a Form 1099-K if your total payments are over $20,000 and you received over 200 transactions on any one platform in a given year.
dryophelia
·1 year ago@erkevin
Some states have lower limits. Like Arizona, has set theirs at $2500 for 2025.
audiokingman
·1 year agoBeware of all the Tax Karen's around here who scour these forums every day hour by hour for people asking questions like yours but never directly answer the question. They only say "it doesn't matter if you get a 1099 or not, you have to report all your income blah blah blah...".
 
selsa84
·1 year agoAt least Karen knows the tax law. Even the IRS.gov site says to report all income.
stainlessenginecovers
·1 year agoAl Capone killed many, robbed many, coerced many- yet he was convicted/imprisoned simply for 'Tax Evasion'.
Too bad Karen wasn't in business in the 20's.
janet9988
·1 year agoYou did not answer the question or give any valid information.
kensgiftshop
·1 year agoGet Karen to do your taxes.
Or are you want that doesn't think you have to report your income if you don't get a 1099K?
roccotacodad54
·1 year agoI observed what happened to someone I know when he was audited and didn't report ALL income. It wasn't pretty.
Blah blah blah sounds good until the IRS starts looking at your income in detail.............
powell-collectibles
·1 year agoFor most that will underreport, the immediate payoff is worth the risk, from a pure numbers standpoint.
Let's say that I have sales of $10,000, profit of $5,000. If I don't report, rough numbers, I don't pay $1,500 in taxes. That's a pretty good benefit, right?!
Let's say, three years from now, the IRS somehow discovers this underpayment, and I have to cough up that $1,500, plus a small amount of interest, and a small penalty (the IRS penalties aren't really punitive at this level). Let's pretend that $1,500 balloons to $2,000. HECK, let's get really crazy and say that the IRS disallows any deductions on that $10,000, so I'm on the hook for $3,000 + penalties and interest. An exaggerated amount owed with penalties and interest of $4,000. All of that sound pretty grim, I'll admit. Neither situation is great, especially that seller is now "on the radar" with the IRS.
BUT, let's take a realistic view of things. MAYBE the chance of this seller being audited AND the IRS discovering this eBay income is about 2% (and that is erring on the high side). The 2% risk of a $4,000 hit is just $80. Expected payoff from not filing would be $1,420. That's a no-brainer for most. People get so confused about why things happen - math explains pretty much all of it.
AND, if an under-the-radar small-time seller would really want to keep under the radar, he'd convert his payouts to the spendable funds option, then just use all of his sales dollars for purchases. That way, zero payouts from eBay, zero items on the IRS radar to notice, even if there is an audit.
Me, I'll get a 1099 for 2025 - this really isn't about me. But folks should realize that not reporting minor income isn't a foolish action (for some, not all). The numbers tell me that it can be quite sensible, and I understand why many are keen to keep under the 1099 threshold.
paxilill
·1 year agoIn before the I sold a shirt at a yard sale for $3.00 in cash (bra money) and reported it as income because it's my civic duty crowd. It looks like i'm late, about as late as Bezos and Musk paying their fair share.
asset_liquidators
·1 year agoIt's really irrelevent because you have to claim your income on your tax returns whether you get a 1099 or not. Just because one does not get a 1099 that doesn't make it "free money". Plus, some States require a 1099 at $600 anyway.
kensgiftshop
·1 year agoIt doesn't matter if you get a 1099K, you still have to report your income.
dryophelia
·1 year ago@jgraese
Go by what is on the irs site. eBay will follow what is stated on the irs site.
This is not an eBay issue, it’s a governmental issue.
It won’t be known until late December what the actual law is for 2025.
mommaknows
·1 year ago$2,500. With that said, you still need to file income.
Yep. All income.