2024 IRS reporting threshold

[mr4wrestle]

Can anyone provide the IRS threshold for reporting? Is it still $20,000 and 200 transactions or has it changed?

[golfingaddict]

eBay and Form 1099-K | eBay

information can be found at the above eBay link.

[dbfolks166mt]

     It's actually $1 for reporting your revenue. If you are talking about the 1099-K as golfingaddict pointed out it is currently at $600 unless the IRS, the Federal Government or an individual state changes something before the end of the calendar year. 

[fern*wood]

The threshold only applies to the folks that have to issue the 1099ks.

[nobody*s_perfect]

The "threshold for reporting" which used to be $20,000 is the threshold at which eBay (and other processors) must send you a 1099-K tax form.  That is NOT the same as a threshold above which you must report your eBay income.

The IRS has not yet officially announced what threshold they expect for 1099-K's for 2024.  Last November, when they announced the threshold for 2023, they said that they plan to have a threshold of $5000 for 2024, but that is not official yet. Here's the November announcement from IRS:

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

But the IRS is merely delaying the implementation of the official federal threshold, which is $600.  Furthermore, several states have already set and implemented their own thresholds, most of which are $600. And as noted elsewhere, those are NOT the thresholds at which you are supposed to report your eBay income, with or without a 1099-K.

[atrac286]

"Last November, when they announced the threshold for 2023, they said that they plan to have a threshold of $5000 for 2024, but that is not official yet"

So is that why eBay is sending out literature that still states $600? 

[nobody*s_perfect]

Because that's the official, legal federal threshold which the IRS is dragging their feet about implementing.   So that has to be the assumed threshold until the IRS makes an official announcement otherwise.

Last year the announcement came in November, but in 2022 it wasn't until December. eBay sellers complain about the additional reporting burden that the $600 threshold would impose on them -- imagine the additional processing burden that the IRS will have when all those $600+ sellers start submitting Schedule C's. Some states implemented a $600 threshold as far back as 2018, so there's plenty of data out there to compare reporting levels in locations with $600 thresholds vs in places where sellers haven't been getting 1099-K's until they reach $20K. The IRS will get a deluge of new forms to process.