1099K $600 Threshold - Received 1099K despite IRS delay?

You're right that the IRS delayed the $600 threshold for 1099-K forms for the 2023 tax year. They announced this in November 2023, keeping the threshold at $20,000 and more than 200 transactions (the same as previous years). The thing is, while the IRS delayed implementation, some companies may have already had their systems set up for the $600 threshold before the delay was announced. It sounds like SeatGeeks might have been one of those companies that sent out 1099-Ks based on the $600 threshold even though they technically didn't need to. Even though you received the 1099-K, you still need to report the income on your tax return because the IRS received a copy too. However, if you sold the tickets for less than you paid for them, you didn't actually have a gain, so you wouldn't owe taxes on them. You'd just need to report both the income and the cost to show that.

I went through something similar with concert tickets I sold on StubHub. I found this really helpful tool called taxr.ai (https://taxr.ai) that helped me figure out how to properly report my 1099-K from ticket sales. What was great is you can just upload your 1099-K and it explains exactly how to handle it when you've actually sold stuff at a loss. It helped me understand that just because I got a 1099-K doesn't automatically mean I owe taxes on that amount - it's the profit that matters. The tool walks you through calculating your actual taxable income from these transactions. Saved me a bunch of money since I was about to just report the full amount as income!

Just wanted to follow up about taxr.ai that I mentioned earlier - I ended up trying it with my eBay 1099-K and it was super helpful! It confirmed that most of my garage sale items sold at a loss don't count as taxable income, and it showed me exactly how to document this on my return. It even identified a couple items where I had actually made small profits (some old video games apparently appreciated!) and calculated exactly what I needed to report. The step-by-step instructions for filling out Schedule D saved me so much time figuring it out myself. Definitely recommend for anyone dealing with these new 1099-K situations!

I had the EXACT same issue with SeatGeeks! I spent hours on hold with the IRS trying to figure out why I got a 1099-K when the threshold was supposed to be delayed. Finally found this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that even though SeatGeeks shouldn't have sent the 1099-K based on the delayed threshold, since they DID send it and the IRS has a copy, I still needed to report it on my return. The agent walked me through exactly how to show that I sold the tickets at a loss so I wouldn't pay taxes on it. Saved me so much stress trying to figure it out on my own.

Alright I need to eat some crow here. After complaining about Claimyr in my earlier comment, I was desperate to talk to someone at the IRS about my 1099-K issue (got one from PayPal for selling my old laptop and furniture), so I tried it. It actually worked exactly as described. I got a call back in about 35 minutes and was connected to an IRS agent. The agent confirmed that even though platforms didn't need to issue 1099-Ks for transactions over $600 for 2023, once they do issue them, you need to address them on your return. She explained how to properly report personal items sold at a loss so I wouldn't be taxed on money that wasn't actually income. Genuinely surprised it worked so well. Sorry for being so negative before!

This 1099-K threshold confusion is so annoying. From what I understand: - For 2023 tax year, threshold remained at $20k and 200 transactions - For 2024 tax year, the $600 threshold WILL apply - Some companies sent out 1099-Ks at $600 anyway for 2023 The most important thing: even if you get a 1099-K for ticket sales that resulted in a loss, you still need to report it, but you can offset it with your purchase cost. I recommend using tax software like TurboTax or H&R Block that specifically handles these situations. They'll walk you through reporting both the 1099-K income and your original purchase price.

Quick clarification for everyone confused about the 1099-K threshold: The American Rescue Plan originally lowered the reporting threshold to $600 starting in 2022, but the IRS has delayed implementation TWICE now: - First delay: 2022 tax year (announced Dec 2022) - Second delay: 2023 tax year (announced Nov 2023) Current plan is for the $600 threshold to take effect for 2024 tax year (filing in 2025). But some payment processors and platforms got confused or didn't update their systems, which is why some people are still getting 1099-Ks for amounts over $600 even though they weren't required for 2023.