1099-K Reporting Limit Increased: 2025
Some good news for small eCommerce sellers! Congress, in the new One Big Beautiful Act, has restored the original 1099-K reporting threshold to $20,000 and 200 transactions in a year.
As a reminder, as part of the American Rescue Plan of 2021, the plan was to lower the reporting threshold to $600, though the IRS repeatedly delayed that, choosing slightly lower amounts in successive years. Well, the moving target is no more.
If you’re an eCommerce business seller, it was always necessary to file a tax return to report your profits, regardless of what 1099-Ks you received. However, lowering the reporting threshold to $600 was starting to catch a LOT of individuals simply selling their personal items, which was a big unintended consequence of the original idea.
While we don’t know the impact, it’s been clear for years that eBay has been pretty vocal in advocating against the lower threshold.
Hopefully, end of year taxes just got a bit easier for small eCommerce sellers!