In 2021, Congress felt that everyone was not paying their fair share of taxes so they enacted more information reporting. Third-party settlement networks, such as PayPal, Square, Venmo and eBay, must send Form 1099-K to payees who are paid over $600 a year for goods or services.

The rules first kick in for 2023 1099-Ks sent out in 2024. They were supposed to take effect for filings this year, but IRS delayed the changes.

More people than ever will receive 1099-Ks because the new rules greatly lower the threshold for 1099-K filings. Under the old rules, these 1099-Ks were sent only to payees with over 200 transactions, who were paid over $20,000.

This really only impact those who were not reporting this income in the first place. So, I along with many others will have more paperwork to verify our income.  Mine is already recorded so I will have nothing to worry about.

You have been warned.

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