Part 7/10:
For most casual sellers—those selling used clothes, furniture, collectibles, or having garage sales—the new $20,000/200 transactions rule means they are not likely to receive a 1099K form unless they exceed that threshold. This offers substantial relief, reducing the likelihood of IRS targeting for small, infrequent transactions.
Active Entrepreneurs and Freelancers
Even with the higher threshold, all income remains taxable, and the IRS still expects people to report their income accurately. If you have a side hustle, freelance work, or run a small business, it’s crucial to continue tracking your income and expenses diligently. The absence of a 1099K does not exempt you from paying taxes; it simply means you might not receive a tax form reflecting your income.