Am I still required to submit my 1099-K for eBay I received even though the IRS pushed back the $600 reporting threshold to 2023? I have under 200 transactions under 20k.

[Anonymous]

I got a 1099-K from eBay and Paypal. However, this was sent to me before the IRS changed their reporting threshold. Now with the new requirement, what do I do with these forms?

[Cynthiad66]

Yes.  Form 1099-K is a tax form used to report certain electronic and credit card payment transactions.

•   The form includes the annual gross amount of all reportable payment transactions made through an individual payment card processor or third-party payment network.

•   The IRS recently postponed the lowering of the reporting threshold for third-party transactions until 2024 (for 2023 transactions).

•   The threshold will be lowered to more than $600 received per year from third-party networks to improve voluntary tax reporting compliance.  For 2022 and earlier transactions, the threshold amount remains at more than 200 transactions that also add up to more than $20,000.

Use this link for additional information.

[Anonymous]

"For 2022 and earlier transactions, the threshold amount remains at more than 200 transactions that also add up to more than $20,000."

In this statement, why doesn't this apply to my situation? I don't have more than 200 transactions or more than $20,000.

[Cynthiad66 · Accepted solution]

The reporting of the number of transactions change is for the company issuing the form 1099-K.  That change lessens the burden of issuing so many Form 1099-Ks for E-bay etc..

So you may not have to file the form 1099-K but you still must report the income listed on the form 1099-K if it nets $400.00 income.

You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 and 1040-SR instructions PDF.

[Opus 17]

You are required to report taxable income, no matter what kind of paperwork you get, and even if you get no paperwork at all.

In addition, since you got a 1099-K, you need to deal with it in some way, or the IRS will probably send a letter asking for more information.

But the first and most important question is, what are you doing on eBay and is this taxable income or something else?

[Anonymous]

Thank you for the explanations!