New $5,000 Threshold for 1099k Forms: Impact on Small Sellers and Hobbyists

Dr. Friday Tax Tips
Dr. Friday Tax Tips
New $5,000 Threshold for 1099k Forms: Impact on Small Sellers and Hobbyists
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In this Dr. Friday Tax Tips – One Minute Moment episode, Dr. Friday addresses the evolving landscape of 1099k forms. She highlights the recent announcement of a new $5,000 threshold for 1099k, set to take effect in 2024. This change is particularly relevant for individuals with small-scale online sales, such as on Amazon, or those running hobby-based businesses. Dr. Friday emphasizes the significance of this update, noting that individuals with gross sales exceeding $5,000 should expect to receive a 1099k form. The episode also references instances from the current year where individuals received the form for amounts as low as six or seven hundred dollars. Dr. Friday’s insights are crucial for small sellers and hobbyists to stay informed and compliant with tax regulations.

Transcript

G’day, I’m Dr. Friday, President of Dr. Friday’s Tax and Financial firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

We keep getting calls on 1099k’s. We all know back in 2022 they announced that they were going to actually do a threshold of $600 and then they said oh wait we’re gonna extend it. Guess what 2024 they have announced a $5,000 threshold. So for all of you that might be selling little things on Amazon, for all of you that are have small little businesses you might think is a hobby and it’s more than $5,000 gross sales you are likely to be getting a 1099k. I actually have people that received it this year when they only had six or seven hundred dollars.

You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.