CHARLOTTE, N.C. — Bank of America Stadium sees more and more big concerts every year.
Luke Combs and Beyoncé were just two of the huge shows at Charlotte's stadium and with those big shows comes increased demand for tickets on the secondary market. But if you bought tickets and resold them, you could get a 1099-K form.
In 2022, the Internal Revenue Service (IRS) launched a new tax rule that requires users of certain apps, including PayPal, Zelle, Venmo and Cash App, to report all transactions over $600.
THE QUESTION
If you sell something for more than $600 on an e-commerce site, will you get a 1099-K form?
OUR SOURCES
- Mark Steber, a tax information officer for Jackson Hewitt Tax Services
- The IRS
- Several e-commerce sites
THE ANSWER
Yes, if you sell something for more than $600 on an e-commerce site, you will get a 1099-K form.
WHAT WE FOUND:
According to the IRS, the law went into effect last year requiring all e-commerce sales over $600 to be reported to the agency. That goes for people who sale multiple items totaling more than $600, too. So there isn't a way around it by breaking large transactions into small agreements.
"If you made more than $600 gross through a third party like Zelle, PayPal, Apple Pay, if you spend more than $600, you're gonna get a 1099-K from the third party, and the IRS is going to get one," Steber said.
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Several e-commerce sites say they will send a 1099-K form to the seller. Steber said to remember that all income earned is taxable unless specifically under the tax code, like life insurance and gifts.
"Under the law, person-to-person transfers are not supposed to be included, like sending your daughter gas money at college, but if you're selling stuff on eBay, you have to account for these," Steber said.
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