A recent tax law change requires online marketplaces and payment apps to issue Form 1099-K to individuals receiving over $5,000 in payments for goods or services in 2024. This update lowers the previous threshold of $20,000 and eliminates the requirement for over 200 transactions, significantly expanding the pool of taxpayers affected. Many occasional sellers, particularly those reselling concert tickets at a profit, may now find themselves subject to tax reporting. However, personal transactions, such as reimbursements to friends, remain unaffected by this rule.
Tax law changes will require online marketplaces and payment apps to send 1099-K forms to individuals receiving over $5,000 in payments for goods or services.
The drop in the reporting threshold from $20,000 to $5,000 means millions more taxpayers will receive 1099-K forms, catching many occasional sellers.
Collection
[
|
...
]