$600 reporting requirement threshold for tax? Use to be $20,000
Anyone else notice "Reduction of reporting requirement threshold (1099-K) for third party settlement organizations"? I believe for 2026, which we file for in 2027, the tax bracket will just be $600. Some 21 year old chosing to live back home might have difficulty hiding her OF gig to parents :O It was part of American Rescue Plan Act of 2021. It was supposed to have taken effect by now, but it caught many off guard, so IRS gradually lowering it. Personally, I don't like it.
American Rescue Plan Act of 2021
https://en.wikipedia.org/wiki/American_Rescue_Plan_Act_of_2021
"Reduction of reporting requirement threshold (1099-K) for third party settlement organizations (e.g. PayPal) from over $20,000 and 200 transactions to over $600 and no minimum number of transaction, effective from tax year 2022. This is expected to impact gig workers, independent contractors, casual eBay sellers, among others. This amendment is projected to generate $8.4 billion over the next decade.[91]"
American Rescue Plan Act of 2021
https://en.wikipedia.org/wiki/American_Rescue_Plan_Act_of_2021
"Reduction of reporting requirement threshold (1099-K) for third party settlement organizations (e.g. PayPal) from over $20,000 and 200 transactions to over $600 and no minimum number of transaction, effective from tax year 2022. This is expected to impact gig workers, independent contractors, casual eBay sellers, among others. This amendment is projected to generate $8.4 billion over the next decade.[91]"
22-25, M
