On March 5th, Congresswoman Carol Miller (R-WV) reintroduced her legislation, the Saving Gig Economy Taxpayers Act, to restore the 1099-K tax reporting threshold to the original $20,000 and 200 transactions threshold. “The Saving Gig Economy Taxpayers Act will help millions of Americans who turn to platforms like eBay to sell used goods around their house," said Ashley Shillingsburg, Head of Americas Government Relations for eBay. “Congresswoman Miller has been a steadfast champion in working to ensure Americans don't have non-taxable income reported to the IRS.” We invite you to read Congresswoman Miller’s press release about the reintroduction of her legislation here.
At the end of 2024, the Internal Revenue Service (IRS) confirmed a reporting threshold of $5,000 for Form 1099-K for tax year 2024. This means that sellers will receive a Form 1099-K if they: 1) exceed the 2024 reporting threshold of $5,000 in gross sales, 2) had Federal and/or State backup withholding applied in 2024, or 3) are residents of States that have a lower reporting threshold. For upcoming tax years, the IRS has announced that online marketplaces like eBay will be required to report transactions when gross sales are more than $5,000 in 2024; more than $2,500 in 2025; and more than $600 in 2026.
eBay continues to advocate on behalf of our sellers for a permanent, higher reporting threshold so that fewer sellers will be subject to 1099-K reporting. We encourage sellers to stay informed as we advocate for Congress to enact a permanent solution to reduce confusion and prevent burdensome and unnecessary reporting requirements in the future. We want to thank members of our eBay Main Street community, and all others, who have made their voices heard on this important issue.
More information on 1099-K reporting for eBay sellers can be found here and we also invite you to review these 1099-K and Tax Withholding FAQs.
Disclaimers:
eBay and its affiliates do not provide legal, tax, or accounting advice. This material is being provided for informational purposes only and is not intended as, and should not be relied upon for, legal, tax, accounting, or other professional advice. Please consult your own legal, tax, and accounting advisors for advice specific to your situation.