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1099-K Reporting Threshold DELAYED

 

IRS Delays $600 Reporting Threshold for Form 1099-K

The Internal Revenue Service (IRS) announced a delay in implementing the lowered reporting threshold for third-party settlement organizations (TPSOs), such as Venmo, PayPal, and other payment platforms.

Key Update:

  • The new $600 reporting threshold enacted by the American Rescue Plan of 2021 will NOT apply to tax year 2022 transactions.
  • Instead, the existing threshold of $20,000 in payments and 200 transactions will remain in effect.
  • Some lower-threshold 1099-K forms may still be issued as TPSOs adjust their reporting systems.

What This Means for Taxpayers:

  • Delaying the $600 threshold does NOT change the taxability of income—earned income is still taxable.
  • The IRS has released guidance on transitioning to lower reporting thresholds over time.
  • Taxpayers should track their earnings independently and report taxable income even if they do not receive a Form 1099-K.

For official IRS guidance, visit www.irs.gov.