Finally, a decision on the 1099k

After much indecision, there is yet another delay on the initial plan to enforce a $600 reporting threshold for the 1099K form. This time, however, there is a plan to slowly phase in this change in 2024.

If you receive more than 5K through a payment app throughout the 2024 tax year, be prepared to receive 1099Ks when filing in 2025. The senders can often label the transaction as business or personal depending on the app. After 2024 the threshold will be less as they attempt to reach the $600 set by Congress. The threshold for 2023 was still the previously set $20,000.

Whether you sell as a side hustle, a business, or a casual seller, these reporting thresholds apply to you. The goal of phasing in lower thresholds is to ease affected taxpayers into the change, gather feedback and concerns, and improve IRS processes.