What is the 1099-K reporting threshold for 2024 tax year selling on platforms like Mercari?
I started clearing out my closet a few months ago and have been selling some items on Mercari and eBay. Nothing major, just clothes I don't wear anymore, some old electronics, and a few collectibles I don't want. I'm getting confused about when I'd need to report this income though. I keep seeing different numbers for the 1099-K reporting threshold for 2024 tax year. Some sites say $20,000, others mention $5,000, and I've even seen $600 thrown around. Does anybody know what the actual IRS threshold is for 2024? I don't want to get in trouble next year when filing. Thanks for any help!
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StormChaser
The 1099-K reporting threshold for the 2024 tax year (which you'll file in 2025) is $5,000. The IRS had previously announced plans to lower it to $600, but they delayed that implementation. It's important to understand that the 1099-K threshold is just about when payment processors are required to send you and the IRS the form. You're technically required to report all income from selling items, regardless of whether you receive a 1099-K or not. However, if you're just selling personal items for less than you originally paid (at a loss), that's generally not considered taxable income. The key distinction is whether you're selling items at a profit or just getting rid of personal belongings at a loss. If you bought a shirt for $40 and sold it for $15, that's not taxable income - it's actually a personal loss (though you can't deduct these losses).
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Dmitry Petrov
•So wait, if I'm selling stuff I don't use anymore but for less than I paid originally, I don't need to report it? What about if I sell something for more than I paid? Like I sold an old video game console I bought years ago for more than I paid because it's somewhat collectible now.
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StormChaser
•If you're selling personal items at a loss (for less than what you paid), that's not considered taxable income - it's actually a personal loss. The IRS views this as disposing of personal property rather than a business transaction. If you sell something for more than you paid (like your video game console that appreciated in value), technically that's a capital gain and should be reported on your tax return. The profit would be the difference between your selling price and what you originally paid (your "basis"). These would generally be considered capital gains, and if you held the item for more than a year, they'd be long-term capital gains which are typically taxed at lower rates than ordinary income.
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Ava Williams
After reading through tons of contradicting info online, I finally found a solution that cleared everything up for me! I was in the same boat selling old clothes and electronics last year and was super confused about the 1099-K thresholds. I used https://taxr.ai to analyze my sales records from multiple platforms, and it actually showed me exactly what was considered taxable income and what wasn't. The service pulled in all my sales data and separated the actual taxable transactions from the non-taxable ones (stuff I sold at a loss). What helped the most was getting clarity on which of my collectibles sales were actually capital gains since I had sold some vintage toys for more than I paid years ago. Definitely recommend checking it out if you're confused about what you need to report from these marketplace sales.
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Miguel Castro
•How does it handle sales where you don't remember exactly what you paid for something years ago? Like I have no receipts for half the stuff I'm selling.
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Zainab Ibrahim
•Does it actually connect to your eBay and Mercari accounts automatically or do you have to manually input all the sales data? Sounds too good to be true tbh.
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Ava Williams
•For items where you don't have the original receipts or don't remember the exact price, the tool helps you make reasonable estimates based on historical pricing data for similar items. It gives you documentation to support these estimates in case of an audit. This was super helpful for my vintage toys where I had no idea what I paid 15 years ago. The service can connect directly to most major selling platforms including eBay and Mercari. You just need to authorize the connection and it pulls in your transaction history automatically. It also has options to upload spreadsheets or PDFs of your sales records if you prefer. It really saved me hours of trying to figure everything out manually.
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Zainab Ibrahim
Just wanted to update after trying taxr.ai from the recommendation above. I was honestly skeptical at first (as you could tell from my question), but it really did make sense of my mess of online sales! I had over 200 transactions across different platforms last year and had no clue which ones I needed to report. The service separated everything into categories - personal items sold at a loss (not taxable) and the few things I actually made a profit on (which were taxable). The platform even flagged some of my higher-value collectible sales that qualified for long-term capital gains treatment, which saved me a bunch on taxes. Definitely worth checking out if you're confused about the 1099-K threshold situation and what you actually need to report from your online selling.
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Connor O'Neill
If you're struggling to get clear answers about the 1099-K threshold or have other tax questions, trying to call the IRS directly is a nightmare right now. I spent WEEKS trying to get through to someone. After multiple failed attempts and hours on hold, I found a service called https://claimyr.com that got me through to an actual IRS agent in under 45 minutes! They have a video showing how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed the $5,000 threshold for 2024 but also explained exactly how to handle my online marketplace sales correctly on my return. Getting official clarification directly from the IRS gave me peace of mind instead of relying on conflicting online sources.
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LunarEclipse
•How does this service actually work? Do they just call the IRS for you or what?
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Yara Khalil
•Yeah right. The IRS wait times are hours long. There's no way they got you through in 45 minutes. What's the catch here? Sounds like they're just charging people for something you could do yourself.
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Connor O'Neill
•The service works by using an automated system that navigates the IRS phone tree and waits on hold for you. Once they get an agent on the line, you get a call connecting you directly to that IRS representative. You're still the one talking to the IRS - they just handle the waiting part. There's definitely no exaggeration on the time saved. I had previously spent over 2 hours on hold before getting disconnected. With Claimyr, I got a call back in about 35 minutes connecting me to an actual IRS agent. I was skeptical too before trying it, but the time saved was absolutely worth it, especially when I needed official clarification on these 1099-K rules that have been changing.
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Yara Khalil
I need to eat my words from my skeptical comment above. After a particularly frustrating day of trying to get through to the IRS myself (3+ hours on hold before being disconnected!), I broke down and tried the Claimyr service. I was honestly shocked when I got a call back in about 40 minutes connecting me to an actual IRS representative. The agent was able to confirm the current 1099-K threshold and also helped me understand how to properly report my online selling activity even though I won't receive a form. For anyone dealing with this confusing 1099-K situation or other tax questions, being able to get official answers directly from the IRS without the insane wait times is a game changer.
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Keisha Brown
Just to add a bit more confusion to the mix - even though the threshold for platforms to ISSUE a 1099-K is $5,000 for 2024, you technically still need to report ALL income, even if you don't get a form. The 1099-K is just a reporting requirement for the platforms, not a threshold for when income becomes taxable. But like others mentioned, if you're just selling personal items for less than you paid, that's not income anyway. Just make sure you keep good records of what you paid for items versus what you sold them for, especially for anything valuable.
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Sofia Gomez
•Does this mean I should be tracking the original purchase price of everything I sell? I don't have receipts for most of this stuff - just clothes and household items I've had for years.
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Keisha Brown
•Yes, ideally you should track the original purchase price of everything you sell, as that establishes your "basis" in the item. For everyday household items and clothing that you're clearly selling at a loss, you can make reasonable estimates if you don't have the exact receipts. For more valuable items like electronics, collectibles, or anything you might sell at a profit, it's more important to document what you paid. If you don't have receipts, you can establish a reasonable basis through credit card statements, bank records, or even researching what the item typically sold for when you purchased it. The key is making a good-faith effort to determine your basis, especially for items where you might realize a gain.
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Paolo Esposito
Be careful with the advice about "selling at a loss isn't taxable." While that's generally true for personal items, if you're regularly selling stuff online, the IRS might consider you to be running a business, which has different rules. The frequency of sales, whether you're buying items to resell, and your intent all factor in.
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Amina Toure
•This is important! I had a side hustle selling vintage clothing and even though some items I sold at a loss, because I was doing it regularly with the intent to make money, the IRS considered it a business. Had to file a Schedule C and everything.
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