@MakerPlace - The IRS reporting level for tax year 2024 is $5,000 and not $600 as listed on MakerPlace. This means sellers earning less than $5,000 should not be receiving a 1099-K form.
Marilyn
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@ickynicks have you seen any clarification on this from MP?
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No, I have not heard anything further.
Marilyn
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Official-ness from the IRS
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Although the reporting threshold is phased, you may receive a Form 1099-K even when total payments are less than the reporting threshold.
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My point is the threshold for tax year 2024 is $5,000 and that is what MP should be posting at their website and not $600 for US sellers.
As of yesterday the incorrect message box was taken down.
Marilyn
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I donât sell there, but it MIGHT be possible that they are taking a proactive approach to save time in the future for their programmers and getting sellers used to the reality of what is coming.
What a concept â the handwriting is on the wall with the $600 requirement. It means that Michaels wonât have to redo the automated system every year for the next two or three years.
From the above tax bulletin â
Reporting threshold
Third party settlement organizations (TPSOs) â which means (payment apps and online marketplaces â are required to report payments on Form 1099-K when the total amount of payments you receive for goods or services through the platform exceeds:
- $5,000 in 2024
- $2,500 in 2025
- $600 in 2026 and after
Although the reporting threshold is phased, you may receive a Form 1099-K even when total payments are less than the reporting threshold. No matter the amount of reported payments, if you receive payments for selling goods or services, you must report all income on your tax return.
Imagine if AMAZON actually got ahead of the curve on anything and didnât have to correct all their âfixesâ for six or eight months after something went into effectâŚ
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I appreciate the time you put into your explanation but the bottom line is MP isnât required or encouraged to accelerate the amount of taxes people are required to pay. If I have a tax break this year this is when I want to take it. I do not want MP skipping over it because it is inconvenient for their programmers.
Marilyn
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And you are incorrect on all counts here.
If you had sales you are legally required to pay the tax on the profit from those sales (REGARDLESS of the amount).
Sadly, you are the perfect example as to why the IRS has lowered the reporting amount. If MOST sellers had been reporting the required information this might never have happened.
You do not, and never did, have a âtax breakâ. What you have (apparently) is possibly years of tax evasion. Think Al Capone on a lesser amount. He killed how many people and ONLY went to prison on the tax charges.
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Hey IckyNicks,
Sorry I missed this! I was out last Friday and didnât get any notifications that you tagged me. I passed your feedback to our team for thought.
I suggest you ask a tax advisor for assistance with your tax questions. Iâm going to stay in my lane as a community manager lol.
To clarify your OG post question- MakerPlace provides this form if a seller hits $600 in sales.
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I do not appreciate your snarky response.
Marilyn
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@MakerPlace - The point of my post was your website was stating an incorrect threshold amount per the IRS for tax year 2024.
Marilyn
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Al Capone didnât appreciate hand cuffs. Do as @MakerPlace suggested and get a good accountant and tax attorney if youâve been selling and not reporting for any length of time.
The penalties add up to more than the tax due over a short period of time.
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