Hi,
If you’ve sold anything on eBay, Etsy, Facebook Marketplace, or gotten paid through Venmo, PayPal, or Cash App for side work, you may have heard that even a $600 year could trigger a 1099-K this year.
This made a lot of people think casual selling or the occasional side job was suddenly getting reported to the IRS in a whole new way. That threshold just got rolled back, and it’s worth knowing exactly where things stand now.
This applies to a lot more people than it sounds like. If any of these describe you, this is relevant:
- You sell items online, new, used, resale, or otherwise, through a marketplace or payment app
- You do gig or freelance work and get paid through a third-party platform
- You’ve received Venmo, PayPal, Cash App, or similar payments for goods or services
- You’re a small business or side-hustle owner who pays contractors
Here’s what actually changed:
- The 1099-K threshold reverted to $20,000 and 200 transactions, and both conditions now have to be met before a payment app or marketplace is required to send you one. That’s a permanent repeal of the phased-in $600 threshold that had people bracing for a form over selling a used couch or splitting a dinner bill
- This isn’t just for 2026 either, the IRS confirmed it applies retroactively to 2025 as well, so last year’s activity is covered by the same higher threshold
- Separately, the general 1099-NEC and 1099-MISC threshold rose from $600 to $2,000, starting in 2026, and it will be adjusted for inflation going forward, so if you pay or receive smaller contractor payments, fewer of them will trigger a form at all
The catch is that not getting a 1099 doesn’t mean the income isn’t taxable. Reportable income is still reportable whether or not a form shows up, the threshold just determines when someone else has to tell the IRS about it.
It’s worth having someone actually look at what you’ve earned across platforms rather than assuming no form means nothing to report, especially since this touches everything from bookkeeping to how a return gets prepared.
That’s why we put everything under one roof:
- Tracking income across all your platforms and payment apps, so nothing gets missed just because a form never arrived
- Bookkeeping for gig, freelance, or side-business income, with a dedicated bookkeeper
- Contractor 1099 filing and compliance, if you’re the one paying others
- Quarterly tax estimates, so self-employment and side income don’t turn into a surprise bill in April
- Personal and business tax returns handled by the same team, so your side income and your main return are never disconnected
Reply to this email by Friday and we’ll set up a free 15 minute call with our senior tax advisor to see exactly where your situation stands and whether it makes sense to have it all under one roof.
Sincerely,
—
George Dimov, CPA
Licensed and Insured
(833) 829-1120 toll free
(212) 994-8081 Fax
www.dimovtax.com
