Threshold for Filing 1099K

[123beth]

Hello- what is the threshold amount I have to make in a year via a third party platform to file a 1099K? (ie. if I make over $600 through eBay in a year then I will need to file, but if I make less than that I don't?) 

Additionally, if I reach the $$ threshold and have to file a 1099K, do I need to record all my expenses that went into the profit I made? 

Thanks!

[John-H2021]

Hello Beth,

You don't file the 1099-K, you will receive a 1099-k, 1099-misc or 1099-nec from the entity or person giving you the money (Venmo, Cash App, etc).

You would report the income on schedule 1 of your tax return if it is a hobby and no expenses can be taken

If it is a business the you will need to file a schedule C (self employment income). On the schedule C you will list all the income you made cash, 1099-K, 1099-nec or 1099-misc.

You will also list all of your expenses associated with making that income. The expenses will be deducted from the income giving you a net profit/loss

Here are a few links with more information

https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed...

https://turbotax.intuit.com/tax-tips/small-business-taxes/when-the-irs-classifies-your-business-as-a...