Small online sellers who generate more than $600 a year in receipts get to breathe a sigh of relief…for one more year.
On December 22, 2022, the IRS delayed the implementation of the $600 threshold for payment platforms to provide 1099-Ks for online sellers. Instead of receiving 1099-Ks in early 2023 for the 2022 tax year, everything is being pushed back a full year.
For the 2022 tax year, the same thresholds of $20,000 in payments received from more than 200 transactions apply.
Get ready for next year
This delay in the 1099-K threshold change in no way absolves small online sellers of their tax obligations for the most recent year. But, it does give them another year to make sure the numbers they file on their Schedule C will match the 1099-Ks that get filed. Perhaps a new bookkeeping website for online sellers could help.