Amendment to Change 1099 from $500 to $10,000

caannie

caannie

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Mar 28, 2006
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www.cnbc.com

Hagerty, Manchin propose $10,000 threshold for Venmo, PayPal tax reporting change — up from $600

Sens. Bill Hagerty and Joe Manchin will propose an amendment to the spending package to increase the threshold for Form 1099-K from $600 to $10,000.
www.cnbc.com www.cnbc.com

Sen. Bill Hagerty, R-Tenn., will file an amendment to the $1.7 trillion spending package, to increase the threshold for Form 1099-K, according to Sen. Joe Manchin, D-W.Va., the proposal's lead co-sponsor.

The tax reporting threshold applies to transfers using third-party payment networks including Venmo and PayPal.

In an exclusive interview with CNBC, Manchin said the amendment would increase the payment threshold to $10,000 from $600 for the 2022 tax season.
Before 2022, taxpayers received 1099-Ks with more than 200 transactions worth an aggregate above $20,000. But the American Rescue Plan Act of 2021 dropped the threshold to just $600. Currently, even a single transaction of more than $600 may trigger the form.
"This is the best relief we can get for people," said Manchin, referencing the $10,000 threshold as "the best way to approach it."
He believes that raising the threshold to $10,000 has broader support than delaying implementation of the new rule.

Tax pros have 'deep concerns' about the $600 threshold​

Tax professionals have flagged the lower tax reporting threshold as a possible pain point for filers, with the risk of receiving 1099-Ks for personal transfers, such as gifts or reimbursements.
 
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#6
Thank you for this news! I appreciate it.
I don't know whose lame brain idea the $600. threshold was to begin with. There was nothing wrong with the $20,000 mark!

Seriously we are already taxed on that money multiple times; Once as earnings and again when we spend it, in my case nearly 10% cause I'm in WA state. So when we sell $600+ we would be taxed AGAIN? $20,000 is about right, that's a starting profit for a business. $10,000 is still too low but a lot better than where it stands right atm.

I know daddy government thinks they know how to spend MY MONEY better than I but they don't. I already thought capital gains tax for me selling my own house (something for which they had NO PART in paying nor did they help sell) was basically theft; then along comes the $600. debacle. That ridiculousness would tax kids allowance for heaven's sake! :mad: Ok rant over..

Thanks for the good news.:tup: Now I hope the amendment passes! Fingers (and toes) crossed.
 
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#10
From Forbes: A proposed amendment to the $1.7 trillion omnibus spending bill that would have raised the threshold from $600 per year to $10,000 per year wasn’t included in the list of amendments voted on when the Senate passed the spending bill yesterday and sent it to the House.

However, in the face of Congress' failure to act, the IRS postponed the reporting requirement for one year:

www.forbes.com

After Congress Fails To Act, IRS Delays Onerous New 1099-K Reporting For Payment Platforms

The law, requiring payment platforms like PayPal to file Form 1099-Ks for anyone receiving over $600 (down form $20,000) threatened mass taxpayer confusion.
www.forbes.com www.forbes.com

Threshold is now returned to original level of $20K and 200 transactions for transactions in 2022 (now).
 
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