1099‑K Threshold Reset:

Shakh Kadirov

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What Gig Workers & Side Hustlers Need to Know
The One Big Beautiful Bill Act, signed
July 4, 2025, has now reinstated the Form 1099‑K threshold to its pre-2021 level — here’s what it means for you:






What Changed?

- The IRS is now required to issue Form 1099‑K only when a user receives over $20,000 in gross payments AND completes 200+ transactions in a calendar year — the rules that were in place from 2011–2021

Why It Matters?

- Casual sellers benefit — fewer forms mailed means less paperwork if you sell on Etsy, eBay, Venmo, etc.
- Record-keeping still matters — even without the form, the IRS expects all income reported
- Peace of mind for gig workers — thresholds now align with 2011–2021 standards

Timeline Recap

Tax Year 1099‑K Threshold
2023  $20,000 + 200 transactions
2024 $5,000
2025  $2,500
2026 $20,000 + 200 transactions restored

Your To‑Do Checklist

- Track all business income on platforms like PayPal, Venmo, Zelle.
- Separate personal vs. business transactions accurately.
- Report every dollar in your tax filing — regardless of receiving a form.
- Plan ahead with quarterly estimated payments if needed.

 Bottom Line

The new law simplifies reporting for many individuals—but responsibility remains. Casual sales may go unreported if not tracked properly.







 

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