1099-K / 2024 Reporting Threshold, $600 or $5000?

[oni_degens]

I noticed Ebay's recent email says that they will send 1099-Ks for sellers that meet the reporting thresholds highlighted here (>$600 in gross sales):

https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794&external=1

That conflicts with the statement the IRS issued, stating there would be a $5000 threshold for 2024:

https://www.irs.gov/newsroom/irs-announces-delay-in-form-1099-k-reporting-threshold-for-third-party-...

Should we expect a 1099-K at the threshold of $600 or $5000? Obviously we are required to report all income, regardless.

[brightlightbookseller]

This has been discussed ad nauseum.  No, the threshold has not been raised to $5000, per your own link: "the IRS is planning for a threshold of $5,000 for tax year 2024" (emphasis added).  It was never implemented, and while it still certainly could be, you'll see an official announcement from the IRS if it is. For now, the law requires $600 as the threshold.

And remember, that's only the threshold to receive a 1099-K form.  You must report your income regardless of whether you receive that form or not.

Next time, please search the forums before posting.

[dbfolks166mt]

     O boy another one of these. Been seeing at least 1 posting a day for the last week or so with the exact same question or misunderstanding of where things currently stand. I suspect this will continue until the IRS makes an official announcement or we hit the calendar year end with no action taken on the current $600 limit. It also depends on what state you happen to live in. 

     Take a CLOSE look at the IRS reference you provided and note the following language. 

........... the IRS is planning for a threshold of $5,000 for tax year 2024..............

[luckythewinner · Accepted solution]

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@oni_degens wrote:

That conflicts with the statement the IRS issued, stating there would be a $5000 threshold for 2024:

https://www.irs.gov/newsroom/irs-announces-delay-in-form-1099-k-reporting-threshold-for-third-party-...

 It does not conflict with that statement.

That statement from Nov 2023 says the IRS is delaying the $600 threshold for FY 2023.

That statement from Nov 2023 says the IRS is planning for a $5000 threshold for FY 2024.

"Planning" does not mean "final".

I have every confidence that eBay will do what the IRS tells it to do.

[inhawaii]

The "reporting" threshold is $1.00.

[chapeau-noir]

Since it's just a form, if it doesn't arrive by the end of January, go ahead and file as you normally do. I might wait a couple more weeks but at that point I wouldn't worry about it.

I'm supposed to get a bunch of forms and, honestly, I've given up keeping track of what the IRS, the state, etc. are going to do with those things - it seems to change quarterly - I just use my own records.

[fbusoni]

@oni_degens 

Since I have no control over what sort of form I receive in the mail from eBay (or from anyone else for that matter), I simply don't think about it.

You will know what the form says when you receive it.

Until then, there are, it seems to me, lots of things to concern ourselves with.

[oni_degens]

Thanks for clarifying. I had missed the wording. That makes sense.

[henkster15]

It's $5,000 **bleep**es!

[kensgiftshop]

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@henkster15 wrote:

It's $5,000 **bleep**es!

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No it's not, it's $600.

[valueaddedresource]

According to the latest press release from the IRS the Federal threshold is  "more than $5,000 in 2024; more than $2,500 in 2025; and more than $600 in calendar year 2026 and after."

https://www.irs.gov/newsroom/irs-provides-transition-relief-for-third-party-settlement-organizations...

IR-2024-299, Nov. 26, 2024

WASHINGTON — The Internal Revenue Service today issued Notice 2024-85 PDF providing transition relief for third-party settlement organizations (TPSOs), also known as payment apps and online marketplaces, regarding transactions during calendar years 2024 and 2025.

Under the guidance issued today, TPSOs will be required to report transactions when the amount of total payments for those transactions is more than $5,000 in 2024; more than $2,500 in 2025; and more than $600 in calendar year 2026 and after.

Notice 2024-85 also announces for calendar year 2024, that the IRS will not assert penalties under section 6651 or 6656 for a TPSO’s failure to withhold and pay backup withholding tax during the calendar year.

TPSOs that have performed backup withholding for a payee during calendar year 2024 must file a Form 945 and a Form 1099-K with the IRS and furnish a copy to the payee.

For calendar year 2025 and after, the IRS will assert penalties under section 6651 or 6656 for a TPSO’s failure to withhold and pay backup withholding tax.

[johnrj1226]

Your  state taxing authority may have a lower threshold than the IRS.  One needs a copy to  go to them. 

[dbfolks166mt]

Your  state taxing authority may have a lower threshold than the IRS.  One needs a copy to  go to them. 

     Indeed there are a number of states that have a lower threshold already codified into law. Remember the 1099-K is a Federal form so the distribution is going to be at the Federal level as well. 

[krazzykats]

IRS confirms $5,000 reporting threshold for Form 1099-K for tax year 2024

[victor1909-2007]

Edited to reflect new information.