1099 reporting income level

[troubles52]

will the 1099 reporting levels change for 2025?

[wastingtime101]

Reporting thresholds are specific to the individual and something you need to look into with the IRS and/or your CPA.

If you're asking about thresholds for issuing a 1099-K, which does not impact whether or not you're required to report your income, then you can read about that here:

https://community.ebay.com/t5/Announcements/IRS-confirms-5-000-reporting-threshold-for-Form-1099-K-f...

[monroe67]

"will the 1099 reporting levels change for 2025?"

The 1099-K reporting minimum for 2025 will be $2,500.00.

That minimum reporting level applies to eBay.  

Greatly oversimplified:  early in 2026, eBay is required to issue a 1099-K to each seller who sells at least $2,500 during 2025. 

Assuming you  are required to submit a United States Federal Income Tax Return 

YOU are expected to list all of your income, from any and all sources, on that federal income tax return.

Even if you sell less than $2,500 on eBay during 2025.  AND less than $5,000 during 2024.  

[angelno_12]

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@troubles52 wrote:

will the 1099 reporting levels change for 2025?

---

No one here can predict what Congress, the IRS, and individual states will decide about 1099-K forms in future tax years. 

According to this press release by the IRS, on your April 2025 tax filing for tax year 2024, the reporting limit is $5,000 unless your state has mandated a lower one. 

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

[12345jamesstamps]

This is for California and don't know about your state.

[inhawaii]

No, fhe "reporting" level is still $1.00

[monroe67]

"According to this press release by the IRS, on your April 2025 tax filing for tax year 2024, the reporting limit is $5,000 unless your state has mandated a lower one."

Assuming that statement is addressed to the OP and other generic eBay sellers ("on your April 2025 tax filing"),

it is highly misleading, if not outright false.   

eBay has its requirements concerning reporting on Form 1099-K.  

US federal income taxpayers have their own requirements concerning reporting their income on Form 1040.

Those requirements are not the same.  

Open the link in "angelno_12's" post and read it carefully. 

In the first paragraph "Third Party Settlement Organizations (TPSOs)" are defined.  

eBay is a TPSO, for purposes of 1099-K reporting.  As a TPSO, eBay is required to report payments to sellers when those payments exceed $5,000 during 2024. 

Here's the second paragraph from your linked document:  

"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."

eBay itself issued an announcement on December 9, 2024 -- you can find it in Seller News -- that says this:

"What this means for sellers

Sellers will receive a form 1099-K if they i) exceed the 2024 reporting threshold of $5,000 in gross sales, ii) had Federal and/or State backup withholding applied in 2024, or iii) are residents of states that have a lower reporting threshold."

Summarized for 2024:  

TPSOs are required to use Form 1099-K to report sellers who sold more than $5,000 in gross sales.

eBay is a TPSO.  

eBay sellers who sold more than $5,000 in gross sales on eBay will receive a Form 1099-K for 2024.
(Unless they live in a state with a lower reporting threshold; if they meet their state's lower reporting threshold, those sellers will receive a Form 1099-K from eBay.)

THEN -- when each of us eBay sellers who are United States federal income tax payers sit down sometime before April 15, 2025, we are all expected to report all our income on on 1040 form (or appropriate version) -- regardless of whether eBay has sent us a Form 1099-K or not.  

The absence of a Form 1099-K does not mean the income can be omitted from a taxpayer's tax return document(s).  

[mam98031]

@troubles52 

The federal threshold on this FORM [it is only a form] is different than it is for the state you reside in.  In your state, the 1099k FORM has to be generated once your numbers reach $1,000 and a minimum of 4 transactions.

Just remember that the threshold for this FORM [1099K] does not now nor has it ever set the threshold for reporting income.  IRS has no threshold for reporting our income.  So with or without a 1099K FORM, you need to report your income.

Myth: If taxpayers didn't receive a Form 1099-K, they don't have to report income.
Fact: According to federal law, all income is taxable unless it is specifically excluded by tax law. Taxpayers should report any profits from selling goods or services, regardless of if they receive a Form 1099-K.

https://www.irs.gov/newsroom/irs-never-mind-the-myths-know-the-facts-about-receiving-a-form-1099-k-i...

[jitalo2022]

A lot of this won't matter when/if the new administration changes the 1099k level back to 200/$20,000 soon.

[fern*wood]

---

@jitalo2022 wrote:

A lot of this won't matter when/if the new administration changes the 1099k level back to 200/$20,000 soon.

---

Doesn’t matter now since the reporting level on filing income taxes is a dollar. The changing thresholds for the 1099k only affects the ones required to issue them.  Why do sellers ignore this?

[mam98031]

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@jitalo2022 wrote:

A lot of this won't matter when/if the new administration changes the 1099k level back to 200/$20,000 soon.

---

Why would they do that? 

And even if they did, it only means some sellers won't get a FORM.  It does NOT mean they don't have to claim their income on their federal income taxes.

If you still believe that money from internet sales is not taxable [free money] if you don't get a 1099K Form, you simply are mistaken and ill-informed @jitalo2022 

Myth: If taxpayers didn't receive a Form 1099-K, they don't have to report income.
Fact: According to federal law, all income is taxable unless it is specifically excluded by tax law. Taxpayers should report any profits from selling goods or services, regardless of if they receive a Form 1099-K.

https://www.irs.gov/newsroom/irs-never-mind-the-myths-know-the-facts-about-receiving-a-form-1099-k-i...

[1786davycrockett]

@jitalo2022 

"A lot of this won't matter when/if the new administration changes the 1099k level back to 200/$20,000 soon."

Very unlikely, considering that Trump and his associates have planned to lower the Federal income tax levels for corporations and the wealthy even more that they had done in 2017.

Those heftier tax cuts will come with a price, and that money will need to come from other Federal tax sources.

What is probably more realistic, will be for the $600.00 threshold for the 1099-K to be lowered to $300.00 -- and maybe less.

[dbfolks166mt]

A lot of this won't matter when/if the new administration changes the 1099k level back to 200/$20,000 soon.

     There are two pieces to this, one is at the Federal Level and the other is at the state level. For those states that already have their own 1099-K issuance thresholds it will matter little what the Federal government does or does not do. Even if the Federal government was to revert to the old 200/$20,000 issuance levels it would not impace or override the current state laws and I would not be surprised to see a lnumber of states begin to establish their own issuance levels that are at or close to the $600 range.