IRS Delayed the 1099 600$ rule for one year. See article

[KingGus]

While I'm against it all the way around, if you aren't selling the item for a gain, they need to keep their effing hands to themselves.

That's what the article says right? "When it comes to selling personal items online, you will only have to report payments if you make a profit on items over $600 one the rule does change - not if you make a loss."

 

[TK161BOONER]

What about inflation?LOL

 

[fwafwow]

That's what the article says right? "When it comes to selling personal items online, you will only have to report payments if you make a profit on items over $600 one the rule does change - not if you make a loss."

I'd take that article (and anything posted on a forum - including this post) with a grain of salt. The quoted sentence isn't accurate, in several respects. The companies who send 1099-Ks (if and when they eventually start issuing them) won't know whether you have a gain or loss, and has been posted by others, if you get a 1099-K, you probably need to "report" to explain that you don't have a gain (if that's the case) - although anyone is free to ignore and take their chances.

 

[antelopedundee]

That's what the article says right? "When it comes to selling personal items online, you will only have to report payments if you make a profit on items over $600 one the rule does change - not if you make a loss."

$600 has been the standard for years. If you accept $600 via PayPal or Venmo [no fee transactions aren't included] you will get a 1099 regardless if you made a profit or loss on the item or service. You'll have to go thru the paperwork in order to show a net gain or loss. You'll only need to prove your basis in the event of an audit.

The IRS is a fustercluck and isn't always the best at matching up 1099s to your return.


A few years ago when I started e filing on my own I neglected to include a small 1099 from a pension and the neglect carried over to the state return too. Thus far neither tax authority appears to have caught it. An accountant friend said to let it go and respond only if they catch the error.

 

[fwafwow]

$600 has been the standard for years. If you accept $600 via PayPal or Venmo [no fee transactions aren't included] you will get a 1099 regardless if you made a profit or loss on the item or service. You'll have to go thru the paperwork in order to show a net gain or loss. You'll only need to prove your basis in the event of an audit.

The IRS is a fustercluck and isn't always the best at matching up 1099s to your return.


A few years ago when I started e filing on my own I neglected to include a small 1099 from a pension and the neglect carried over to the state return too. Thus far neither tax authority appears to have caught it. An accountant friend said to let it go and respond only if they catch the error.

I’m pretty sure before the law changed in 2021 it was $20k and 200 transactions. There have been other 1099s with a $600 threshold, but I don’t believe the 1099-K was one of them.

I agree with

 

[fwafwow]

Sorry to resurrect this thread, but I saw in the WSJ today. Even though the $600 rule has been deferred again and it's $5k for 2024, apparently some states don't follow the IRS threshold.

"Maryland, Massachusetts, Vermont, Virginia and the District of Columbia have a $600 threshold in effect for 2023, says Kelli Wooten, a principal with KPMG who specializes in this area. North Carolina and Montana also have a $600 threshold, although state tax officials have said these states may offer relief. Wooten adds that in New Jersey the threshold is $1,000, while in Illinois it is $1,000 and four transactions."

 

[walk2112]

Glad I stumbled into this, @fwafwow thanks for ressurrecting, not going to take anyone's word for it on here, but really prompted me to follow up and know where I stand. Hard to keep up with all this stuff these days sometimes.