Huge News for New Yorkers Who Sell on eBay

Great news for anyone who sells stuff online for extra cash. The IRS just hit pause on the lower threshold for reporting online sales until 2024, giving everyone a bit more breathing room.

via GIPHY

Originally, a $600 reporting threshold was set to kick in back in 2022, causing a tax-form frenzy for the 2023 season. That meant anyone who made $600 or more on eBay (or Venmo) would be issued a 1099-K at the end of the year. However, the IRS has pushed the deadline to 2023 and is even offering a transition year, with a $5,000 threshold in 2024.

The current threshold is $20,000 in at least 200 transactions, so bringing it down to $600 would be crushing for most people who sell as a hobby. A lower bar would mean unnecessary tax nonsense for small-scale sellers or those just cleaning out their closet.

Imagine if you made $200 at your garage sale and somebody walked up and immediately demanded half. Yeah, f*@!% you, right?

Congress seems to have mixed feelings on the matter. While there's bipartisan support for raising the threshold, the suggested amounts vary—Republicans want $20,000 back, while some Democrats are proposing $5,000. The Senate's leaning towards $10,000 with at least 50 transactions.

Now, with the IRS extending the timeline, the $600 threshold won't hit until at least the 2026 tax season, unless further legislation goes though. The big question is whether Congress will agree on a change and find a way to slip it into the upcoming tax package, considering their track record.

Either way, the tax slaughter for eBay sellers has been delayed, but it's anyone's guess how it'll all unfold. Stay tuned.