How to handle 1099-K from Eventbrite for one-time concert promotion - What income type for tax filing?

5 But couldn't this be considered a hobby since they said it's not something they do for a living? I thought hobby income had different rules? And what about the fact that they didn't make any profit - does that even need to be reported?

14 The IRS doesn't really care if it was a one-time thing or a regular business when you're receiving a 1099 form - they want to see that income reported. The key difference with hobby income is that after the tax law changes in 2018, you can no longer deduct hobby expenses on Schedule A. By reporting on Schedule C, you can deduct your expenses directly against that income. If you claimed it as a hobby, you'd have to report all $1,200 as income but couldn't deduct your expenses, which would actually cost you more in taxes. Since Eventbrite already reported this income to the IRS via the 1099-K, not reporting it would create a discrepancy that could trigger questions.

12 How exactly does that work? Do you just upload your tax forms and it tells you what to do? Does it actually file for you or just give advice?

16 I'm skeptical about using any third-party service with my tax documents. How do you know they keep your information secure? Seems risky to upload financial docs to some random website.

8 You just upload your documents and it uses AI to analyze them and give you personalized advice. It explains exactly what each form means for your situation and what you need to do with it. It doesn't file for you - it just helps you understand what you're looking at and how to handle it correctly. The security is actually really good - they use bank-level encryption and don't store your documents after analysis. I was worried about that too, but they explain their security measures on the site, and they don't share your info with third parties. It's basically just a tool to help you understand what you're looking at rather than trying to figure it out yourself.

7 Wait, how is this even possible? I thought you had to wait on hold yourself. How can another service hold your place in line?

16 Sounds too good to be true. The IRS phone system is notoriously terrible. I've literally spent days trying to get through. No way some service can magically fix that.

19 They use technology that monitors the hold line for you. It's like having someone else wait on hold on your behalf. They've figured out how to navigate the IRS phone system efficiently and can tell when you're getting close to an agent. It works because they're basically just handling the "waiting on hold" part, which is what makes calling the IRS so terrible. Once they see you're about to reach an agent, they call you and connect you directly. You still talk to the IRS yourself, they just eliminate the hours of waiting on hold. I was skeptical too until I tried it and got through to an agent in my first attempt after weeks of failed calls.

1 Thanks for the warning. Do you know what specific documents your brother needed to provide? I have digital receipts for the venue payment and some email confirmations for the band payments but not formal contracts. Would bank statements showing the transfers be enough?

3 He needed to provide everything he could get his hands on. Bank statements showing transfers were helpful, but the IRS also wanted to see actual agreements with the bands. Even if you don't have formal contracts, save those email confirmations where terms were discussed. The biggest issue was that without a formal business, the IRS was suspicious about whether this was truly a legitimate activity versus just trying to zero out income. Having documentation that showed this was a real event helped a lot. My brother also had to provide proof the event actually happened - he used flyers, social media posts about the event, and even photographs from the night.

14 The thresholds changed several times recently. For 2022, the threshold was supposed to drop to $600 (with no transaction minimum) but then the IRS delayed implementation. However, some payment processors and platforms like Eventbrite went ahead and issued 1099-Ks at the $600 threshold anyway. For tax year 2023, the threshold remained at the old $20,000 AND 200 transactions, but the IRS has announced the $600 threshold will apply for 2024 tax year. It's been confusing for everyone because of these delays and changes. But regardless of whether Eventbrite was required to issue the 1099-K or not, once they've sent it to both you and the IRS, you do need to account for that income on your return.

Really good points about the quarterly payments and documentation! I hadn't even thought about the estimated tax issue if I do another event. Quick question - when you mention saving communications about the non-profit intent, would text messages with the bands or venue count? Most of my planning was done pretty informally through messages and phone calls rather than formal emails. Also, do you know if there's a specific way to indicate on Schedule C that this was community-focused rather than profit-motivated?