1099 600 dollar Threshold update please.

[flutterybutter]

Hi.... I've seen so much conflicting information about the new 600 dollar threshold for 1099's in 2022.... many of it outdated, not just conflicting, and the last time I asked Ebay directly that said they have no information that anything has changed and that currently the 1099 threshold is still $20,000 + 200 transactions.  Maybe I'm wording it wrong, but I can't seem to get a truly definitive answer from google either.  Was hoping someone had some current information about this change, if it is in fact going it change, and if possible I'd appreciate a link or guidance to the source of the information.  Thanks.

[dnasilver]

Why not just check out the IRS website? If that does not clear things up for you best to contact a CPA to explain it.

[luckythewinner · Accepted solution]

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I asked Ebay directly that said they have no information that anything has changed and that currently the 1099 threshold is still $20,000 + 200 transactions. 

That is correct. The current 1099-K threshold for your 2021 payments (that you will put on your 2021 tax return that you file in April 2022) is $20K and 200 transactions.  

Was hoping someone had some current information about this change, if it is in fact going it change

The future 1099-K threshold for your 2022 payments (that you will put on your 2022 tax return that you file in April 2023) is $600.  

When someone refers to the year "202X" without clarifying whether they are talking about (a) the year the law was passed; (b)  the year the payments are received; or (c) the year the tax return is filed, I think people get confused. 

[farmalljr]

Currently, like Lucky said, in 2021 you must make 200 transactions AND 20K in payments received to get the 1099.

Starting in January 2022 (in a few days), when you receive $600 or more in payments, you will get a 1099 at the end of the year for taxes filed in 2023. 

If you have concerns, you should talk to your tax person, It's entirely possible if you have not been claiming the income before and you suddenly start next year, you may get audited. The requirement to report your income from sales has always been MUCH lower that 20K. 

[downunder-61]

I am sure I have seen this topic before, oh yes, here are some, feel free to browse…

Threads on tax law

[jayjaspersgarage]

The only difference is whether a particularly low volume seller will get a 1099K or not.  Everyone has to include their on-line sales in their taxes every year since the internet was invented.  

[tdrake]

The bottom line is nothing is changed for you. eBay and other online companies will have more work to do, but for you, you just report your income the exactly the same as you always did. 

A lot of hoo haa over nothing.

[short_circuit.lineman61]

Keep this in mind, this is the reality of how "Tax the Rich" works.

[katzrul15]

If you are paying tax on your sales revenue currently, there is ZERO confusion on this topic.  As there is NO CHANGE. 

The ONLY change is tied to the reporting mechanism threshold to the IRS for a 1099k.

The number of Sellers "worried" about this is astounding - sell all year, get down to the last 14 days of 2021 and suddenly every 5 min this is a board thread issue.   Goodness.

[justafemster]

Love how all the tax cheats have been outing themselves.  

[kensgiftshop]

@flutterybutter 

What difference does it make if you're issued a 1099 or not, you should be reporting your income.

[iart]

Just pay your taxes like you always should have been. No investigation needed. No research. No questions to the board. Just pay the taxes you owe.

Simple.

But, apparently too simple for many.

[flutterybutter]

Thanks to those who answered the question and stayed on topic.  And truly, thanks to all who felt compelled to add additional commentaries, sarcasms, morality lessons and assumptions while knowing nothing about the OP's (or anyone else's) specific situation.  I appreciate the bonus gifts.

[luckythewinner]

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@flutterybutter wrote:

Thanks to those who answered the question and stayed on topic.  And truly, thanks to all who felt compelled to add additional commentaries, sarcasms, morality lessons and assumptions while knowing nothing about the OP's (or anyone else's) specific situation.  I appreciate the bonus gifts.

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If it helps, please understand that the intended audience for any particular thread on this board is much wider that just the person who posted the original question or comment.

And while your post made no mention about whether you include your eBay income on your tax return, there have been dozens and dozens of posts here from sellers who were clearly treating the 1099-K as a threshold for the taxpayer to report income rather than a threshold for the payment processor to report payments. So I wouldn't take it personally that people were reading things into your question that were not there. 

[flutterybutter]

fair enough, thank you 🙂