CHARLOTTE, N.C. — We got this email from viewer Ludwell C, he said:
"I sold two preseason Panther tickets on Ticketmaster. I have received an email asking me among others things to provide my tax ID so Ticketmaster can send me a 1099k if I sell over $600 in tickets on the website. Is this legit? I sold my tickets for less than I paid for them. Why would my proceeds be assumed to be income?"
OUR SOURCES :
THE ANSWER:
Yes, if you sell something for more than $600 on Ticketmaster, you have to fill out a 1099K form.
WHAT WE FOUND:
When the American Rescue Plan went into effect on Jan. 1, so did a new law that requires sales completed on E-Commerce platforms to be reported to the IRS.
The new law now requires people who get more than $600 per year to report it.
"This could come from a variety of places," Henry said. "This could be a ticket sale, but it could be many things, things you sold on e-bay, could be all different types of transactions."
The Ticketmaster website said the company is generally required to file a Form 1099-K report with the IRS if the gross amount of your transactions is $600 or more in a calendar year.
"When you file taxes in 2023 so by April 15 by 2023 that will be a reportable transaction," Henry said
But what about the second part of Ludwell's question?
If you're selling something at a loss, do you still have to fill out a 1099k for Ticketmaster?
Henry told us, "Since the sale is more than $600, third-party payment apps will still issue you a 1099-K tax form no matter what." However, the $600 would not be taxed as income in this case because it's a loss, not a gain."
Contact Meghan Bragg at mbragg@wcnc.com and follow her on Facebook, Twitter and Instagram.
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