Does the new $600 limit apply to both people individually if they file jointly or $600 combined between two individuals who file jointly?
Hi Zack10, thanks for posting the question.
In settlement of third-party payment network transactions above the minimum reporting thresholds -
- For returns for calendar years after 2021:
- Gross payments for goods or services that exceed $600, AND
- Any number of transactions
- applies only for transactions for the provision of goods or services settled through a third-party payment network.
If you have multiple revenue sources, such as PayPal, Etsy, Venmo, you would receive a Form 1099-K from each of them if each aggregate amount is $600 or over.
$600 is the reporting threshold to IRS and if a form 1099-K is issued, it has no bearing on income tax filing status.
Hope the above clarifies.
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