CONFUSION ABOUT 1099

[caldreamer]

Government raised the threshold for $25,000 (all this means is that large corporations have less 1099 bookkeeping to do).   This has nothing to do with you reporting your income to the IRS.    IRS still requires that you report all income (even if you don't receive a 1099).

[monroe67]

"Government raised the threshold for $25,000 . . . . . ."

For calendar/tax year 2025, the 1099-K issuance threshold has two criteria that both must be met:
1.    Number of Dollars:  Twenty Thousand dollars ($20,000.00)   and
2.   Number of Transactions:  Two Hundred transactions (200).

[buyselljack2016]

I saw the horse. 

It was confirmed to be dead.

It shall rise again.

Much reading for the boards.

[stephenmorgan]

The reason the law was changed back to 200 Items and $20,000 is because Congress was convinced enough people were selling items at a loss and that normally they are not required to report the (personal property loss) income except for the fact the 1099K was issued to them.  This required the income to be accounted for on tax documents.  Internet sales are easily traceable income and another congress saw this as an opportunity to get more taxes by lowering the threshold to $600.  Who knows how the next congress will view the income.

I always make money so I accounted for my income with or without the 1099K.  A look at the Form 1040 and it is surprisingly easy to report your personal property loss 1099K income as a loss.  There are two methods and one is just a single entry.

https://www.irs.gov/businesses/what-to-do-with-form-1099-k

Personal items sold at a loss

A loss on the sale of a personal item can't be deducted from your taxes. But you can zero out the reported gross income so you don't pay taxes on it.

If you sold items at a loss, which means you sold the items for less than you paid, there is no tax liability. You have 2 options to report the loss:

• Report the payment on your tax return at the top of Schedule 1 (Form 1040) PDF. This will ensure you don’t pay taxes you don't owe; or
• Report the loss on Form 8949, Sales and Other Dispositions of Capital Assets, which carries to Schedule D, Capital Gains and Losses.

The first option is just a single entry.

[estate_echoes]

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@stephenmorgan wrote:

The reason the law was changed back to 200 Items and $20,000 is because Congress was convinced enough people were selling items at a loss and that normally they are not required to report the (personal property loss) income except for the fact the 1099K was issued to them.  This required the income to be accounted for on tax documents.  Internet sales are easily traceable income and another congress saw this as an opportunity to get more taxes by lowering the threshold to $600.  Who knows how the next congress will view the income.

I always make money so I accounted for my income with or without the 1099K.  A look at the Form 1040 and it is surprisingly easy to report your personal property loss 1099K income as a loss.  There are two methods and one is just a single entry.

https://www.irs.gov/businesses/what-to-do-with-form-1099-k

Personal items sold at a loss

A loss on the sale of a personal item can't be deducted from your taxes. But you can zero out the reported gross income so you don't pay taxes on it.

If you sold items at a loss, which means you sold the items for less than you paid, there is no tax liability. You have 2 options to report the loss:

• Report the payment on your tax return at the top of Schedule 1 (Form 1040) PDF. This will ensure you don’t pay taxes you don't owe; or
• Report the loss on Form 8949, Sales and Other Dispositions of Capital Assets, which carries to Schedule D, Capital Gains and Losses

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Threshold lowered, hire thousands of IRS employees. Fire thousands of employees, raise threshold, claim you saved billions.

I