mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@themayqueen wrote:are you imagining that my post is about me? it 's about millions of people who are being hassled for no reason, it's part of the recent general legislation that also tried to surveil all of our banking transactions of any kind and literally EVERYTHING that's more than $600 accumulative, in a year. !!! plus the 1099's. You're really ok with that? .it's disturbing and pointless, at that level. And yes i often advocate for millions and have done so for decades. I've spoken with legislators as well.
--last time i looked, if it isn't used, then it's New; doesn't have to be brand new this year. i only put my best UNUSED vintage supplies up, I use the rest for my crafting , but I have to make it pay for itself. I use good descriptions, good disclosure, people don't complain.
You seem to assume that those that might receive a 1099K for $600 or so would then owe more taxes. That is simply not the case. In fact most if not all of those that have a low income [according to IRS] are likely to see NOT ADDITIONAL taxes needing to be paid once they take the costs away from that $600.
It is much to do about nothing. Low income people are highly likely to be just fine.
AGAIN, the transactions going into a bank account has NEVER been lowered to $600. That still sits at $10,000 before the bank has to report a transaction to the IRS. As I've explained in more detail before, with links to the CORRECT information for you, you are confusing two DIFFERENT things and presenting them as one.
"The reporting threshold for third party settlement organizations, which include payment apps and online marketplaces, was changed to $600 by the American Rescue Plan Act of 2021. The IRS announced a delay in implementing this change for tax year 2023, which covers tax returns generally filed in early 2024.
Although the Form 1099-K reporting threshold for 2023 is $20,000, companies could still send the form for totals over $600."
They changed it back to 20,000 for 2023 tax year.
https://www.irs.gov/businesses/understanding-your-form-1099-k
All marketplaces do NOT have to issue 1099Ks unless they are the Money Processor too. So if it is simply a marketplace that allows a different money processor to process payments, it is that Money Processor that is responsible for issuing the proper 1099Ks.
Why would a company send out 1099Ks for less than the threshold?? That is an added expense to that company that they don't have to incur.
For 2023 the threshold is like it has been in past years which is as you said the $20,000, but you forgot to mention it also must be for 200+ transactions. So someone that was paid $20,000 with 100 transactions would not get a 1099K per the IRS rule.
There is also several STATES that have their own requirements for a 1099K, many are less than the IRS threshold right now, so those will get issued if appropriate.
"I know, it's been EXTREMELY confusing. It's delayed til the end of Dec, and it then most likely changes to a higher amount than $600 according to them. ( like $5000) It's a battle being fought in Congress. So here's the direct link that tells you a lot more about it on the IRS website. "
Yet another assumption on your part. There has been no such battle for the reduction of the threshold in 2022 or 2023. IRS made the decision. They may have cleared it with the Congress, I simply don't know. But as far as I know there was no "battle".
