The $20,000 reporting threshold for payment card companies to issue Form 1099-K was scheduled to drop to $600 for 2023. A late change in November returned the original threshold, and
the 2024 reporting threshold is expected to be $5,000.
Here are some steps to consider:
whether you receive a tax form or not.
If you receive the form due to activity on sites like Amazon, Etsy, or taking rent payments, the IRS considers you a business, even if you lost money.
While the revenue reported on Form 1099-K must be reported, you can also include any related expenses to reduce reportable income by filling out Schedule C.
Save receipts and records so you can explain all the income and expenses on your tax return.
Additional Reading:
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