mam98031 • Volunteer Community Member • Buyer/Seller since 1999
wooden_flower Volunteer Community Mentor.
1 BEST ANSWER
Accepted Solutions
It isn't a "limit", it is the minimum required to have a 1099K form issued to you. And yes, IRS has decided not to make it effective until 2023 sales.
Keep in mind this does not change ANY tax law for 2022 or 2023. This is ONLY the threshold for getting a FORM, nothing more than that. This Form does not nor has it ever set the minimum requirement for reporting income.
There is no change to the taxability of income; the only change is to the reporting rules for Form 1099-K. As before, income, including from part-time work, side jobs or the sale of goods, is still taxable. Taxpayers must report all income on their tax return unless it is excluded by law, whether they receive a Form 1099-NEC, Nonemployee Compensation; Form 1099-K; or any other information return.
As of right now it is effective for calendar year 2023.
It isn't a "limit", it is the minimum required to have a 1099K form issued to you. And yes, IRS has decided not to make it effective until 2023 sales.
Keep in mind this does not change ANY tax law for 2022 or 2023. This is ONLY the threshold for getting a FORM, nothing more than that. This Form does not nor has it ever set the minimum requirement for reporting income.
There is no change to the taxability of income; the only change is to the reporting rules for Form 1099-K. As before, income, including from part-time work, side jobs or the sale of goods, is still taxable. Taxpayers must report all income on their tax return unless it is excluded by law, whether they receive a Form 1099-NEC, Nonemployee Compensation; Form 1099-K; or any other information return.
