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new 1099k tax law
Hi-
I have a question about the new gig bill that was just passed with the covid stimulus bill. The bill states that under the stimulus bill, for the 2022 tax year going forward, more workers will receive a Form 1099-K, which shows their gross income from gig economy platforms and which companies send to the IRS. Does this mean that anything sold on ebay or any other online platform will be reported for all 2021 transactions or does it mean that the new $600 threshold will take affect for 2022 transactions?


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new 1099k tax law
Under the stimulus bill, for the 2022 tax year going forward, more workers will receive a Form 1099-K, which shows their gross income from gig economy platforms and which companies send to the IRS. The amendment made by subsection (a) shall apply to returns for calendar years beginning after December 31, 2021. The H.R.1319 - American Rescue Plan Act of 2021 - Section 9674.
The law and IRS guidance previously only required companies to send many workers these forms if the individuals earned more than $20,000 in income over more than 200 transactions, which is a high bar for the average person with a part-time side gig. The new law requires companies to send workers those forms if they earn more than $600, regardless of the number of transactions.
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new 1099k tax law
Under the stimulus bill, for the 2022 tax year going forward, more workers will receive a Form 1099-K, which shows their gross income from gig economy platforms and which companies send to the IRS. The amendment made by subsection (a) shall apply to returns for calendar years beginning after December 31, 2021. The H.R.1319 - American Rescue Plan Act of 2021 - Section 9674.
The law and IRS guidance previously only required companies to send many workers these forms if the individuals earned more than $20,000 in income over more than 200 transactions, which is a high bar for the average person with a part-time side gig. The new law requires companies to send workers those forms if they earn more than $600, regardless of the number of transactions.
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new 1099k tax law
Thank you for that clarification! Much appreciated.
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new 1099k tax law
Hi,
I will receive a 1099K for selling extra tickets for sporting events. How do I report this? I paid more for the tickets from the sports team than I received, so I had a loss.
Thx, [PII Removed]
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new 1099k tax law
If you are not in the business of buying and reselling tickets to sporting events then your loss is a personal loss and not deductible.
If you are in the business of buying and reselling tickets you will enter the income reported on Form 1099-K for selling extra tickets for sporting events as self-employment income in Schedule C Profit or Loss from Business. Follow these steps to enter your Form 1099-K information:
- Open or continue your return.
- Search for Schedule C and select the Jump to link in the search results.
- Answer the questions about your business.
- On the screen Let's enter the income for your work, select Other self-employed income.
- If you’re returning to Schedule C, select Review or Edit next to your work and then answer the questions about your business.
- On the screen Tell us about other self-employed income, enter your 1099-K info.
- Select Continue when finished.
If you are entering income from a 1099-K, remember that it reports the gross amount of the transactions. It doesn't include any adjustments for credits, refunds, discounts, or fees. You’ll have a chance to enter self-employment expenses in another part of your return.
This link How do I enter a 1099-K in TurboTax Online? has information that you may find helpful.
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new 1099k tax law
What to do if I have my 1099 form but already file
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new 1099k tax law
It depends on whether you already reported your income @Stephen3031. Sometimes amounts on Form 1099-K are double reported on other tax forms, including Form 1099-NEC or you may have reported the amounts as credit card payments.
If you've reported all the income, you do not have to do anything.
If some or all of Form 1099-K is additional income, then you will have to amend your return. The TurboTax amend function will be available later this month.
Go to How to amend (change or correct) a return you already filed. If you do not see instructions for 2021, it means 2021 amend is not ready yet.
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