A 1099-k for selling a personal item??? What’s going on?

Published On: November 15, 2022

A 1099-k is a form reported to you and to the IRS by Card companies and third-party network transactions. Prior to 2021, you would only receive one if you met these thresholds

  • Gross payments received that exceed $20,000
  • More than 200 transactions.

Now it’s much different. You will receive a 1099-k if you receive a payment for goods or service that exceed $600!

Yes, that means if you sell a personal item on eBay for more than $600 you as well as the IRS are getting a 1099-k for that. What does that mean for you? That means the IRS is expecting you to report that on your Tax Return. If you receive a 1099-K this year please make sure to provide it to us and be prepared for a phone call and some questions from us so that we can report it properly to minimize income tax or determine that tax does not apply.