Most people have never seen a 1099-K form in their tax prep pile, but there’s a good chance they will next tax season. This new tax form will be a burden for people selling old items out of their garage or basement. Teenagers babysitting or mowing lawns, college students tutoring high schoolers, and roommates splitting rent are all eligible to be taxed, according to Democrats.
Before the law change, a taxpayer would have to earn $20,000 and at least 200 transactions through a business credit card or a business cash app on their phone to qualify for a 1099-K form. Congressional Democrats expanded this by eliminating the 200-swipe requirement entirely and lowering the $20,000 hurdle to just $600.