Taxes on Concert Ticket Re-Sales: Should You Expect a 1099K Form?

Maybe you’re in college, working part-time waiting tables, and the financial gain of re-selling your Eras Tour ticket was too good to pass up. No matter the reason, if you re-sold your ticket(s) for more than $600 and made a profit, you can expect to receive a 1099K form to report that income.

While the rule used to be that side income only had to be reported if it surpassed $20,000 from over 200 transactions, everything has changed since the start of 2023. The change in numbers comes from an IRS initiative to keep better track of taxable income among taxpayers, and the rule applies to side income earned anywhere.

Any platform that allows a customer to sell products and services or exchange money (vendor apps like Paypal) must report information on earners who surpass the $600 threshold to the IRS and send those earners a 1099K form. If you broke even or sold your ticket at a loss, this is not deductible, but you may be asked to report this if you receive a 1099K in the mail.

While the ruling has created bad blood between the IRS and some platforms who claim the lower threshold makes this a burdensome process, the IRS has stated that they will provide more guidance on this matter when tax time comes around.