We hope you've been taking some time for yourselves and enjoying this holiday season with family and loved ones. As of an announcement one week ago today, there’s one more reason to celebrate. The IRS has announced a delay in the implementation of a $600 reporting threshold set to take effect for the upcoming tax filing season!
The one-year delay is great news for millions of taxpayers who casually sell used or pre-owned goods online, many who, like you, are selling things around their house, out of their garage, out of their closets, and their kids’ closets. When selling used goods, the income from the sale isn’t taxable if you’re selling the item for less than you bought it. You’ll now be spared the burden of reporting sales that aren’t providing income if you sell less than $20,000 annually and have fewer than 200 transactions, as required in previous years. The existing 1099-K reporting threshold of $20,000 in payments from over 200 transactions will remain in effect.
We’d also like to clarify that we believe it is every customer’s responsibility to comply with all laws regarding online sales. Please continue to file tax forms accordingly as required by law.
Anyone on hold or not allowed to sell because of the $600 threshold is no longer on hold and can sell again.
Kidizen joined the 1099-K Fairness z because we take any issue that negatively affects our customers very seriously. While the one-year delay is great news, we will continue to urge Congress to permanently raise the threshold to prevent this change from being a major burden when you file your 2023 taxes. For more information on the 1099-K tax reporting, please visit https://1099kfairness.org/.