$600

[Jolly]

https://www.cnbc.com/amp/2022/11/23/heres-why-you-may-get-form-1099-k-for-third-party-payments-in-2022.html

[jon-nyc]

Yeah we talked about this when they changed the regulation.

I asked my son’s Spanish teacher if she wanted cash and she said no.

My guess is when she sees the 1099 from Venmo she’ll change her mind

[George K]

Cleaning lady - Cash dollars.
Piano teacher - Cash dollars.

They were both shocked when, in January, I told them why.

[kluurs]

Yup - easy to get over that threshold if you sell anything online - like a car, piano or such. At least in the past, the IRS wasn't making terribly clear how to account for the fact that one might not have a tax consequence for that - i.e. Bought a car for $40,000 in 2019 and sold for $25,000 in 2022. I suspect this will blow up in a few months. I wrote a letter to Dick Durbin about this and said - "hey guy - guess what's going to happen the first quarter of 2023? I specifically detailed the $600 and the 1099K arriving in people's mailboxes."

Here's the nonresponsive reply....

Dear Mr. kluurs:

      Thank you for contacting me about tax fairness.  I appreciate hearing from you and share your concerns.

      The current tax code is heavily unbalanced in favor of corporations and the wealthiest Americans.  We are struggling to rein in our growing debt and address the deficit problem.  Yet the federal government forgoes more than $1 trillion dollars each year on various tax deductions, credits, exclusions, and tax loopholes that disproportionately benefit the very wealthy and the well-connected.  We spend more on tax deductions and credits than the government brings in from personal income taxes.  We must take a hard look at such backdoor spending and restructure these tax benefits to concentrate more heavily on middle- and low-income Americans.

      I am an original cosponsor of the Paying a Fair Share Act of 2021 (S. 1652), which would require taxpayers with an annual adjusted gross income exceeding $1 million to pay at least 30 percent effective tax rate.  The Paying a Fair Share Act has been referred to the Senate Committee on Finance, of which I am not a member. 

      I will keep your thoughts in mind as I continue to work for fair and responsible tax policies that address the needs of all Americans and improve our fiscal sustainability.  As Congress considers comprehensive tax reform, policies that ensure high-income earners pay their fair share must be part of that discussion. 

      Thank you again for contacting me.  Please feel free to keep in touch.