Am I still required to submit my 1099-K for eBay I received even though the IRS pushed back the $600 reporting threshold to 2023? I have under 200 transactions under 20k.

Forum|Forum|3 years ago
February 1, 2023
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I got a 1099-K from eBay and Paypal. However, this was sent to me before the IRS changed their reporting threshold. Now with the new requirement, what do I do with these forms?

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Best answer by Cynthiad66

The reporting of the number of transactions change is for the company issuing the form 1099-K. That change lessens the burden of issuing so many Form 1099-Ks for E-bay etc..

So you may not have to file the form 1099-K but you still must report the income listed on the form 1099-K if it nets $400.00 income.

You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 and 1040-SR instructions PDF.

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Cynthiad66

Yes. Form 1099-K is a tax form used to report certain electronic and credit card payment transactions.

• The form includes the annual gross amount of all reportable payment transactions made through an individual payment card processor or third-party payment network.

• The IRS recently postponed the lowering of the reporting threshold for third-party transactions until 2024 (for 2023 transactions).

• The threshold will be lowered to more than $600 received per year from third-party networks to improve voluntary tax reporting compliance. For 2022 and earlier transactions, the threshold amount remains at more than 200 transactions that also add up to more than $20,000.

Use this link for additional information.

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A

Anonymous

"For 2022 and earlier transactions, the threshold amount remains at more than 200 transactions that also add up to more than $20,000."

In this statement, why doesn't this apply to my situation? I don't have more than 200 transactions or more than $20,000.

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Cynthiad66Answer

The reporting of the number of transactions change is for the company issuing the form 1099-K. That change lessens the burden of issuing so many Form 1099-Ks for E-bay etc..

So you may not have to file the form 1099-K but you still must report the income listed on the form 1099-K if it nets $400.00 income.

You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 and 1040-SR instructions PDF.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"