Do I need to report my 1099-K income this year if it exceeds $600? Postponed rule?

Thanks for that clarification. So if the tickets I sold were for events I couldn't attend and I actually sold them for less than what I paid originally (which is true for most of them), then technically there's no taxable income because I didn't make a profit? And just to double check - even though they don't have to send me a 1099-K because I'm under the $20k/200 transaction threshold, I should still be keeping records of these sales in case the IRS ever asks about it?

Correct - if you sold the tickets for less than you paid, that's considered a personal loss which isn't deductible but also isn't income. You didn't make a profit, so there's nothing taxable to report. Absolutely keep records of your original purchases and the sales prices. Documentation is your best protection in case of questions. I always recommend keeping a simple spreadsheet showing what you paid for items and what you sold them for, especially if you're regularly selling things online. Better to have records and not need them than vice versa.

How does it handle the difference between selling personal items vs. actually running a small business? I occasionally sell unused stuff around my house on eBay, but I'm not trying to make a profit - just decluttering. Would this help me figure out if I need to report anything?

I'm a bit skeptical about tax tools that aren't major names like TurboTax or H&R Block. Does it actually connect to any official IRS systems or is it just giving general advice? Last thing I want is to follow some random tool's advice and get audited.

It actually has a specific section that walks you through determining if your sales are personal items (like your household stuff) or actual business inventory. It asks about your intent, frequency of sales, and whether you're making a profit. For decluttering, it would likely confirm you don't have taxable income if you're selling at a loss. The tool doesn't file your taxes or connect to IRS systems - it analyzes your specific situation against current tax laws and provides documentation explaining your obligations. It's more about giving you personalized guidance and documentation to support your filing decisions, kind of like having a tax pro review your specific situation without the high cost.

How does this actually work? I'm confused. Do they have some special access to the IRS or something? I've literally tried calling dozens of times this tax season and always get the "try again later" message.

This sounds like complete BS honestly. Nobody can "skip the line" with the IRS. They probably just keep autodialing until they get through, something anyone could do themselves. I bet they charge a fortune too.

They don't have special access - they use a system that continuously redials and navigates the phone tree automatically until they get through. It's like having a robot assistant keep trying for you instead of doing it manually yourself. When they reach a real person, they call you and connect you directly. They actually don't charge that much considering the time it saves - especially during tax season when call wait times can be 3+ hours if you even get through at all. For me, the peace of mind from talking directly to an IRS agent about my specific situation was totally worth it versus trying to interpret conflicting online advice.

Wait, so if I sold my old Pokemon cards for more than I paid 20 years ago, that's capital gains and not just regular income? Does that mean I might pay less taxes on it? I made like $3k selling my childhood collection last year and just wasn't going to report it since I didn't get any forms.

Yes - if you owned those Pokemon cards for personal enjoyment for years and then sold them at a profit, that would be considered a capital gain, not ordinary income. Long-term capital gains (items held over a year) are typically taxed at lower rates than regular income. Since you held them for 20 years, you'd qualify for long-term capital gains rates, which could be 0%, 15%, or 20% depending on your income bracket - often lower than your regular income tax rate. You should definitely report this on Schedule D. Even without a 1099-K, the IRS expects you to report all income, including from casual sales that resulted in a profit.

Exactly right. Since you sold personal items at a loss (for less than you originally paid), there's no taxable income to report. And since you're well under the $20,000/200 transaction threshold, Facebook wasn't required to issue you a 1099-K for 2023 taxes.