IRS Postpones 1099-K Reporting Rules to 2024

[@kevinbender6153]

Can't spell "Theirs" without IRS

[@norikkagodun568]

Does it have to be both, made 20K AND more than 200 transactions?
What if it is less than 20K but 200 transactions or vice versa?

[@aaronkosharskyswhiteknight5224]

yes has to be both, if it follows the previous years rules, thats what it has been. I repeat, you must passs BOTH!

[@ACEKING26]

i think is both

[@Brad68303]

You just said they said they pushed it off another year. But... as of today 2/2/24 I just received a 1099 for tax year 2023 for $800.00 in sales. So now what?

[@rob_cpa]

They pushed the 1099-k lower limits. The old rule still stands at $20,000 and 200 transactions. As for the 1099 NEC or Misc, they did not change this…it’s still $600. You will need to report you 1099 on your tax return.

[@alandunaway3000]

Wait, so it's not $600?

[@rob_cpa]

The 1099-K, which is different than the 1099-MISC and 1099-NEC, limit for 2023 is $20,000.
Correct, they decided to delay the $600 minimum for future years.

[@PattyWebb-bg1ho]

What about 2024

[@rob_cpa]

There is a bill in Congress right now that would change the rule to $1,000...we'll wait to see if it passes.

[@jennellrogers9007]

So is it that you have to have BOTH 20,000 AND 200 transactions Or is it if you have 20,000 OR 200 transactions

[@rob_cpa]

Good question - yes, its $20,000 from over 200 transactions.
Thank you watching the video.

[@Ninnjette-]

I got a 1099K from Mercari. I made $2,000 for the entire year. Should I report that?

[@rob_cpa]

Yes, you need to report it on your tax return. The IRS has received the same copy of that 1099K.

[@Ninnjette-]

@@rob_cpa Thank you!!

[@BigLikeACow]

So if you are below those thresholds do you report your income? Im confused 🤔

[@rob_cpa]

Good question.
You still report income, it’s just you will not receive one of these tax forms and the IRS will not receive a copy as well.

[@Kennystesting]

I am a single member LLC. I hired an independent contractor to do $1100 worth of work for me last year. I paid her through her PayPal merchant account. So if she does not get a 1099K from PayPal, should I send her a 1099 for the amount I paid her?

[@rob_cpa]

Good question.
Since you are paying them through a merchant processor, its up to the processor to mange the 1099 filings.
To be safe, you can always sent a 1099 to the contractor, but its not required since PayPal will manage it.
If you do send one, then use Track1099.com - its easy and cheap.

[@TheBeautybound]

Ebay hasn't made a statement or change on their 1099 page- will they still be sending them regardless?

[@rob_cpa]

Here is Ebay - its $20,000 and 200 transactions before they send 1099Ks. www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794

[@sokio317]

How about Uber, Amazon Flex, DoorDash etc?

[@rob_cpa]

Based on Uber's website, it states that drivers will recieve a 1099-K if they are paid over $20,000 and 200 transactions.
This is based on the new IRS rules - please see my new video: ruclips.net/video/insVoe_aTmM/видео.html - in short, the IRS went back to the old rules for 2023.

[@sokio317]

Everyone else like DoorDash, Amazon flex for example that receives a 1099-NEC does not change?

[@gameofyou1]

I’m sure this delay has nothing to do with it being an election year…

[@rob_cpa]

Good point...usually does...but I think they realized how much paperwork and confusion it was going to be before year-end.

[@ACEKING26]

so that means the year of 2023 is void if i did not reach the limit of 5000 dollars of sales?

[@rob_cpa]

$5,000 is the minimum for 2024. In 2023, the limit is $20,000

[@ACEKING26]

@@rob_cpa may i ask does this also apply to doordash?

[@thegrapevine10]

So a family sending someone 800 dollars and 1200 dollars through zelle to pay for mortgage is going to get a letter from the IRS? And is it going to require cash to be withdrawn and deposited to a persons account in order to avoid the IRS bothering you?

[@theinquisitor18]

It only applies to business income(i.e., Self-Employed income). As long as you DON'T mark it as a business transaction(I.e., Goods and Services on PayPal or Venmo), you're fine. I don't think Zelle even offers business payments. Now, if the transactions were truly business income, you would need to report them, even if no 1099-K/1099-NEC was issued, but at that point, it's a moral decision for you to make and if you are willing to take the risks.
The whole point of this reporting requirement is to catch Sole Perpetrators who are not reporting their business income and not paying income and SE Taxes.
With all that said, and the reason the IRS is postponing the 1099-K requirements is because of people making mistakes, mislabeling transactions that were truly personal payments as business income, or furnishing errors by payment processors.
I'm all for this reporting requirements, but I see the issues that will need to be ironed out first before full implementation.
Edit: Zelle does offer some small business services, but they are not subject to the reporting requirements. They do not report transactions on 1099-K, according to their FAQ, even if it was a business transaction. They are not subject to these reporting requirements.

[@ivanjohnson8123]

What about StockX and goat reselling apps

[@waunbudd2665]

Would multiple accounts help?

[@saohengyoung5785]

Subscriber #1690!!!

[@rob_cpa]

Thank you for subscribing

[@TuffEnuffIII]

Do not comply... period

[@pingadol1555]

Does any of this apply lets say to PayPal friends and family transactions?

[@rob_cpa]

Yes it does.
Keep in mind, if you are sending money to family and friends as reimburesements, these tend not to be taxable.

[@thepfaltzy4010]

Would this be different depending on the state you live in? I live in Iowa and have sold items on eBay. I’ve sold more than 200 items but less than the $20k required