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zack10
New Member

$600 limit for both individuals or combined if filing jointly?

Hi,

 Does the new $600 limit apply to both people individually if they file jointly or $600 combined between two individuals who file jointly?

Thanks!

1 Reply
KochuK
Employee Tax Expert

$600 limit for both individuals or combined if filing 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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