The new bill just signed into law on July 4, 2025 (“Big Beautiful Bill”) includes two little-known changes in tax form reporting. One change is regarding the 1099-K tax form and goes into effect for year 2025 and beyond (ht reader calwatch). The other is regarding the 1099-MISC tax form and goes into effect for year 2026 and beyond.
- Form 1099-K is only required to be issued for someone who receives $20,000 in revenue AND 200+ transactions. This is how it was all the years, until a few years ago when they started changing it – we wrote about that in this prior post.
- Form 1099-MISC is only required to be issued for someone who receives payment of $2,000. That’s instead of the prior threshold of $600 which we’ve had all the years. This begins in 2026 and affects tax forms for earnings from small gigs and the like.
- Note: 1099-INT reporting requirement of $10 has not changed. That’s the form used for interest earned from banks and what’s usually for bank account bonus reporting. Brokerage bonuses are typically 1099-MISC, and so those could be affected by the change to make the required reporting amount $2,000. Referrer bonuses (e.g. from Chase and Amex) are also 1099-MISC and could be affected. The change would affect bonuses earned in 2026, meaning, the tax forms which are sent out in 2027 and beyond.
You can find the full bill here, look for section 70432 and 70433. Here’s another article from a congress committee with a summary of the 1099-MISC change.
As we’ve said many times before: tax forms have no effect on actual tax liability. They are just reporting mechanisms.
Note, there are a few states that have other tax reporting laws, and so it’s difficult to really know when you’ll get a 1099. The stated reporting amounts are just requirements, and a business or financial institution can issue a tax statement at lower levels if they choose. (If you never gave in your SSN/EIN, it’s pretty safe to assume your won’t get a tax form.)
Update: Comments now closed as it’s devolved into political drivel. A lot of it from commenters that don’t generally comment on the site
As noted by
PJ — The $20k/200 change is retroactive, and applies to payments from calendar year 2022 onwards.
Now this is the content Dad comes here for. Dad is happy. Dad was not pleased that he had to dig through 2 pages of posts about regional banks offering bonuses in timbuktoo to find this.
this site does have RSS feeds that are broadly categorized, but I think it’s just a little bit more burden on the author to categorize them to a feed
I use feedly to keep track of posts ive seen vs new ones
Last year’s taxes I received a 1099-K for the first time when I only sold a few stuff but it was more than $600, so I am glad that they are increasing the amount back to $20,000 so I don’t expect to receive one next year since I don’t sell anything anywhere near that amount!
Don’t forget about the 200 transaction minimum that they added back also.
Exactly, they have delayed the federal change every year so far. It’s states that have been imposing it and it doesn’t seem like it’s going away
booooooo jannies are now deleting messages boooooo
We’ve always done this
Am I the only one that had to Bing “jannies”?
You are not alone lol, guess late 20’s is the new mid 50’s.
Didn’t find any raised ceiling for the W-2G . . . still $1,200 I suppose. 🙂
jannies nuke this thread yet?
I guess not lmao
The comments here sure went political in a hurry.
As “enthusiasts” can we all agree this is at least a small light in the current credit card darkness?
Why? As it says in the post, it doesn’t change your tax liability in any way. Only how it is reported.
Here for the comments
Awww, I’m late for the party and missed all the fun.
Ideally, doesn’t matter as your tax liability is independent of this. Practically, it certainly matters! What is the rationale behind this loosening? I’ll probably never understand…
It is less burdensome for 1099 filers.
are we sure that the 2k for 1099k threshold starts this year and not in 2026? There are some conflicting reports out there such as this one (which says starting in 2026):
The One Big Beautiful Bill Passed: Learn What’s Changing | TaxAct
“The Form 1099-K reporting threshold would revert back to $20,000 over at least 200 transactions starting in 2026.”
I think the above is an error but want to make sure before I start going over $2500 this year for ebay sales.
Per the image of the bill text above, it states the amendments are effective for payments after December 31, 2025.
The $2,500 1099k threshold for 2025 is not a part of this new bill. The threshold was announced late last year by the IRS.
Sorry, I am confused. Chucks says the following in the post: Form 1099-K is only required to be issued for someone who receives $20,000 in revenue AND 200+ transactions. This is how it was all the years, until a few years ago when they started changing it – we wrote about that in this prior post.
So are saying that this doesn’t go into effect until 2026? The text above for the new bill repeals the $2500 in 2025 and $600 in 2026 thresholds for 1099k reporting. My only question is whether the new bill starts this year or next year since it says that the effective date shall take effect “as if included in section 9674 of the American Rescue Plan Act”…..which I don’t really understand what that means.
I am going by IRS guidance for 2025 until we get more clarity on the new bill’s threshold and dates of effectiveness. I’m sure eBay will make an announcement soon if there is a material change for 2025.
The American Rescue Plan was passed on March 11,2021 and it seems to make the change retroactive to that date. Any tax lawyers here?
Im a tax lawyer. Stop paying all taxes immediately. Nothing will happen to you. Also, go to your nearest bank with a mask on, bags with dollar signs and many loaded handguns.
You are correct. The $20k/200 change is retroactive, and applies to payments from calendar year 2022 onwards.
Keep in mind that your tax liability on Ebay sales is not affected, whether you get the form or not.
Yep, agreed. I’m selling pretty much all used items at a loss. I just don’t want the hassle of estimating cost basis since I typically don’t have receipts.
It’s clear on the last line of each section when it goes into effect: the 1099-K is for the year after December 31, 2024 – that would be 2025. The 1099MISC is for the year after December 31, 2025 – that would be 2026. Are you seeing something different?
I thought that part where it mentions the year after 12/31/24 for effective date only applied to section b relating to withholding. For section a, under effective date, it doesn’t say the year after 12/31/24. It says effective date shall take effect “as if included in section 9674 of the American Rescue Plan Act”.
All that said, I am almost sure that this applies for tax year 2025. It wouldn’t make sense that section a and section b would start in different years.