: Gig workers and online sellers to get 1099-K tax forms for the first time due to new $600 threshold

by | Nov 25, 2022 | Stock Market

Millions of gig workers and sellers on platforms like eBay and Esty look set to get a tax form in the new year that they haven’t received before, unless a lobbying push by the platforms is successful. The change, which has taken effect with the 2022 tax year, is that third-party payment networks will be required to send 1099-K forms to workers or sellers who have earned more than $600 in a year, down from prior thresholds of $20,000 a year and 200 transactions.

The new approach is due to a provision in March 2021’s American Rescue Plan, which was Democrats’ $1.9 trillion COVID-19 aid package. It’s expected to raise $8.4 billion over 10 years.  Supporters of the shift say it’s about helping workers document their income so they can later get Social Security and other benefits, while critics have described it as burdensome or a “cash grab.” A group called the Coalition for 1099-K Fairness has been pushing for Congress to roll back the change to help “casual sellers and micro-businesses,” as part of the usual lobbying by industries for year-end legislation. Its members include eBay
EBAY,
-0.42%,
Etsy
ETSY,
+0.27%,
Poshmark
POSH,
+0.06%,
Mercari
MCARY,
+1.77%,
Airbnb
ABNB,
+1.08%
and PayPal
PYPL,
-0.83%,
which operates its original payment system as well as other offerings such as Venmo. “Without timely Congressional action, millions of Americans and fledgl …

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