Threshold to track & report yearly income is $600

[SwordfishMining]

"Included in the agreement is a provision that would generally increase the $600 threshold to $1,000 and adjust it for inflation after 2024 on forms 1099-NEC and 1099MISC, but not on form 1099-K. On January 31, 2024, H.R.7024 was passed by the House of Representatives by a vote of 357-70."

The entire reply from Senator Rosen:
Dear John,

Thank you for contacting me regarding changes to the U.S. Internal Revenue Service (IRS) tax reporting requirements passed in the American Rescue Plan of 2021 (P.L.117-2). I welcome your thoughts on this topic.

As you may know, Section 9674 of the American Rescue Plan (P.L. 117-2) lowered the threshold for tax reporting requirements for exchanges of goods and services on third party networks. Previously, these third party settlement organizations were required to report to the IRS, using form 1099-K, transactions exceeding $20,000 and users with at least 200 transactions. Now, the threshold is $600 annually in transactions, regardless of the total number of transactions. However, on November 21, 2023, the IRS announced that it would delay the implementation of the $600 reporting threshold on form 1099-K for tax year 2023.

On January 16, 2024, Senator Ron Wyden and Congressman Jason Smith announced that a nearly $80 billion tax agreement - the Tax Relief for American Families and Workers Act of 2024 (H.R.7024) - had been reached between the Senate Finance Committee and the House Committee on Ways and Means. Included in the agreement is a provision that would generally increase the $600 threshold to $1,000 and adjust it for inflation after 2024 on forms 1099-NEC and 1099MISC, but not on form 1099-K. On January 31, 2024, H.R.7024 was passed by the House of Representatives by a vote of 357-70.

You may be interested to learn that on February 1, 2024, I sent a letter to Majority Leader Charles Schumer to urge him to bring the Tax Relief for American Families and Workers Act to the Senate floor for a vote as soon as possible. Please know that I am closely monitoring the status of this tax package, and should it come to the Senate floor for a vote, I will be sure to keep your thoughts in mind.


I believe Nevada families deserve a tax code that is fair and works for them. As your Senator, I will continue to fight for what is right for Nevada’s working families, and I appreciate your thoughts on how best to do so.

It is an honor to represent you and all Nevadans in the United States Senate and I welcome your input as we work to find common ground in the 118th Congress. To stay informed of my work in the Senate, please visit my website and follow me on Facebook, Twitter, and Instagram.

Sincerely,

Jacky Rosen
U.S. Senator

If yer not cryin', yer not tryin'.