1099-K $600 rule changed back to $20k

[ikeo1]

The change to this would've impacted anyone using digital payments over $600. Fortunately this was changed. Used markets like this would've caused all sorts of problems for secondary items. This is a good primer on the issue.

tldr: $20k AND 200 transactions per provider and no longer $600 which would've been painful

 

[D00DST3R]

This is good news, it's been in limbo and going back and forth confusing the masses. The people can have some relief from the worry

 

[ikeo1]

This is good news, it's been in limbo and going back and forth confusing the masses. The people can have some relief from the worry

Just keep in mind it applies to 2026, 2025 is still in limbo

 

[p--and--p]

I used to buy and resell a bunch of LEGO, lightsabers and so many things.. This would have killed me so I almost stopped/ slowed down. I was able to get 1/3 of the buyers to pay as friends, but most want to pay as G&S so then that would add up and screw me over. $600 is a JOKE that Biden and his gov came up with. Should be at least $5000, but $20000 is great. The gov doesn't need every penny, we already give so much. I wasn't even making money half the time, I just changed my mind, but now it would have been taxable (yea I have no receipts from marketplace or other things I bought years ago, no way to prove its not taxable income, which was the most infuriating part of this.

 

[cobian1984]

I used to buy and resell a bunch of LEGO, lightsabers and so many things.. This would have killed me so I almost stopped/ slowed down. I was able to get 1/3 of the buyers to pay as friends, but most want to pay as G&S so then that would add up and screw me over. $600 is a JOKE that Biden and his gov came up with. Should be at least $5000, but $20000 is great. The gov doesn't need every penny, we already give so much. I wasn't even making money half the time, I just changed my mind, but now it would have been taxable (yea I have no receipts from marketplace or other things I bought years ago, no way to prove its not taxable income, which was the most infuriating part of this.

The stupid rule bit me last year from reselling some of my Dodgers season tickets. You can imagine that after just a sale or two I was already over the threshold for being issued a 1099-K from StubHub, and suddenly I’m running a ticket brokerage.

 

[Batman]

I stopped selling on Ebay because of this. Between their fees (14%), IRS income tax (28% roughly), and CA income tax (9.3%), it was over 50%. Everyone was making money except me!

 

[Hit Factor]

You guys know who we have to thanks for this, right? Why would a “king” do this?

 

[packy14]

You guys know who we have to thanks for this, right? Why would a “king” do this?

Hahahha but but he wants to be a kinggggggg. Whaaaaaa!!!!!!

 

[H. Bowman]

This is good. I get more than 600 bucks every month or three in Venmo just from people paying their half of business lunches and I wasn't looking forward to getting taxed on it.

 

[Pacman]

I stopped selling on Ebay because of this. Between their fees (14%), IRS income tax (28% roughly), and CA income tax (9.3%), it was over 50%. Everyone was making money except me!

Right there with you- I was a longtime ebay seller and shut down my little store in 2023 because of all the taxes and fees. Much of what I sold had already been taxed multiple X's over. I would get emailed by customer service informing me I still had a $7 credit to claim at the cost of handing over my DL and SS# to an employee working in a different country. I told them to keep the $7, I'm out.

 

[Hgray81]

Just a note. Even if you don't get a 1099, you are still responsible for reporting income from all sources.

 

[Hit Factor]

Just a note. Even if you don't get a 1099, you are still responsible for reporting income from all sources.

Yeah, and I always do that right after I finish listing everything I bought on the internet that they didn’t charge me sales tax for so California can interfere with interstate commerce by charging me a “use tax” on it.

 

[Hgray81]

Can't tell you how many times someone has told me they didn't think they needed to report it because it was "below the threshold ". Just wanted to toss it out there incase anyone didn't know what they were doing.

 

[p--and--p]

Can't tell you how many times someone has told me they didn't think they needed to report it because it was "below the threshold ". Just wanted to toss it out there incase anyone didn't know what they were doing.

Yea, but say I buy two lego sets for $500 each- I'm $1000 in and then I sell them for $900 because I changed my mind. I paid in cash local but had to ship out and someone paid as G&S.. so how do I even start to prove that the $900 is not "income" when in fact I am even losing money. This is why the whole thing is a farce. No one is going to report anything they don't need to

 

[H. Bowman]

Yea, but say I buy two lego sets for $500 each- I'm $1000 in and then I sell them for $900 because I changed my mind. I paid in cash local but had to ship out and someone paid as G&S.. so how do I even start to prove that the $900 is not "income" when in fact I am even losing money. This is why the whole thing is a farce. No one is going to report anything they don't need to

Because you should have reported and paid sales tax on the thousand dollar cash purchase also.