With millions of crafters running small businesses on handmade online marketplace Etsy, many in the U.S. could be affected by an IRS change in reporting income.
Starting in 2022, online marketplace platforms (including Etsy, Facebook Marketplace, eBay, PayPal, Venmo) will be required to issue a 1099-K income form if you receive payments of $600 or more.
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Previously, the threshold was $20,000 and at least 200 transactions. This rule is part of the American Rescue Plan Act of 2021, applying to anyone who receives payments for goods/services processed by third-party payment networks. Income should be reported on an individual or business’s tax return. Joining me to discuss this is Sarah Korhnak, an accountant and bookkeeper known on the internet as Small Business Sarah.
Disclaimer: this video is for informational purposes only and does not constitute financial, accounting, or tax advice. Please consult a licensed professional about your own specific situation and small business needs.
The IRS Is Cracking Down on Small-Time eBay and Etsy Sellers
It’s going to become harder to avoid telling the IRS about income from selling stuff online. Here’s what to know
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