IRS Lowers 1099-K Reporting Threshold for Gig Workers to $5,000

The move is part of the agency’s plan to eventually reduce the threshold to $600.
IRS Lowers 1099-K Reporting Threshold for Gig Workers to $5,000
App-based delivery workers wait outside a restaurant that uses app deliveries in New York City on July 7, 2023. Spencer Platt/Getty Images
Naveen Athrappully
Updated:
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The reporting threshold for online transactions carried out by gig workers has been reduced significantly from the $20,000 limit, the IRS said on Nov. 26.

Form 1099-K is applicable to individuals who casually sell goods online or engage in gig work. Online marketplaces such as Amazon or payment apps such as PayPal are required to prepare Form 1099-K and send copies to the taxpayer and the IRS. The form details the payments a taxpayer receives from selling goods and services. In 2023, these entities had to prepare the form if a taxpayer conducted 200 transactions and collected more than $20,000.
Naveen Athrappully
Naveen Athrappully
Author
Naveen Athrappully is a news reporter covering business and world events at The Epoch Times.