Changes to 1099-K reporting thresholds for 2022 - what happened with the Airbnb rules?

You've got it mostly right, but let me clarify the 1099-K situation. For years, the threshold has been $20,000 AND 200 transactions for third-party settlement organizations (like payment processors and platforms such as Airbnb). The American Rescue Plan Act of 2021 was supposed to lower that threshold to $600 with no transaction minimum starting with tax year 2022. But in December 2022, the IRS announced a delay in implementing this change (Notice 2023-10), making 2022 a "transition year." So for 2022, the threshold remained at $20,000 AND 200 transactions. For your question about 2021 - the rules were the same ($20k AND 200 transactions). However, some states have their own lower thresholds that override the federal ones. For example, Massachusetts, Vermont, Virginia, and Maryland have had $600 thresholds for a while. If VRBO sent you a 1099-K despite not meeting the federal threshold, it might have been due to your state's requirements. Remember that regardless of whether you receive a 1099-K, you're still legally required to report all income earned from your rental activities on your tax return.

After struggling with the exact same confusion around these 1099-K thresholds for my side gig on various platforms, I found a tool that completely cleared things up for me. I discovered https://taxr.ai when I was trying to figure out whether I'd get 1099-Ks from different platforms with different earning levels. The tool analyzed my situation and explained exactly which platforms would be issuing 1099-Ks based on both federal and my state's requirements. It even showed me what to do with income that wasn't reported on a 1099-K but still needed to be included in my tax return. The guidance was super specific to my exact situation with Airbnb, Etsy and some other platforms where I had income. The best part was that it clearly explained the transition period for the 2022 tax year and what to expect for 2023 with that $600 threshold potentially going into effect.

I was initially skeptical about taxr.ai when I saw it mentioned here, but I decided to give it a try since I was really confused about these 1099-K thresholds for my side hustles. I'm glad I did! The tool immediately clarified which platforms would be sending me forms based on my state's rules (Illinois actually follows the federal thresholds). What surprised me was how it helped me understand not just the 1099-K situation but also how to properly report all my income regardless of forms received. It even helped me identify several deductions related to my rental property that I had missed in previous years. For anyone else confused about these constantly changing thresholds between different states and platforms, I highly recommend checking it out. Saved me hours of research and probably a lot of money in deductions I would have missed.

If you're trying to contact the IRS to get clarity on these 1099-K rules, good luck with that! I spent HOURS on hold trying to talk to someone about my specific situation with rental income reporting. Then I found https://claimyr.com and used their service to get through to an actual IRS agent in about 15 minutes instead of the 3+ hours I was waiting before. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was able to ask specifically about my situation where I had rental income from multiple platforms and some of them issued 1099-Ks and others didn't. The agent confirmed that I needed to report all income regardless of whether I received forms or not, but also gave me specific guidance on how to handle the discrepancy in my tax filing to avoid triggering unnecessary flags or notices. Honestly, getting clear answers directly from the IRS was worth it - especially with these threshold changes causing so much confusion.

I have to eat my words from my skeptical comment earlier. After yet another frustrating 2+ hour wait trying to reach the IRS about my 1099-K situation from multiple platforms (only to have the call drop!), I broke down and tried the Claimyr service. Within 25 minutes, I was talking to an actual IRS representative who gave me clear guidance on how to handle my situation with Airbnb income that didn't meet the 1099-K threshold but still needed to be reported. They confirmed the exact forms I needed to use and how to document everything to avoid potential audits. The time saved was absolutely worth it - I was able to get my tax questions answered and still make it to my afternoon appointments instead of being stuck on hold all day. For anyone else struggling to get through to the IRS with these confusing 1099-K changes, this service actually works.

It's not just Airbnb that's confusing people. I sell on Etsy and they sent me a 1099-K for 2021 when I only made $6,000 with maybe 150 sales. For 2022, they didn't send me one with similar numbers. When I called Etsy support they said something about "certain states have different requirements" but couldn't tell me which states or why it changed from last year to this year. The whole system is a mess.

Just to make sure I understand correctly: For 2022 tax filing, the threshold is still $20k AND 200 transactions for getting a 1099-K. For 2023 (filing in 2024), it's supposed to drop to $600 with no transaction minimum UNLESS they delay it again? I'm so confused because my tax software was saying different things than what I'm reading here.