Links down below if you want to read about what those are about. It says here the IRS issues facts, fact page, on the form 1099-K threshold under the one big beautiful bill. Dollar limit now reverts to $20,000. So it says the IRS issued today frequently asked questions in this fact sheet. Let’s dive right into what this is. And it says right here the dollar amount has been reverted back to $20,000. It says right here, form 1099-K is an IRS information return used to report certain payments to improve voluntary tax compliance. Well, let me explain what this is.

This form is what tracks payments through third party payment apps, right? And for a lot of us that have used eBay and other third party apps and websites to sell goods that we buy and flip, this 1099-K is triggered when you start accepting payments. And a handful of years ago, that number was reduced from anything more than $20,000 to a much lower amount. I want to say at one point it was $600. But it says right here the one big beautiful bill retroactively reinstated the reporting threshold in effect prior to the passage of the American Rescue Plan Act of 2021.

So that a third party settlement organization, think about Cash App, Venmo, all of these other companies that provide these third party payment apps, says here is no longer required to file a form 1099-K unless the gross amount of reportable payment tracking actions to a payee now extends past $20,000. And the number of transactions exceed 200. You see, before that, a handful of years ago, it was changed to a really small amount. And this rushed a ton of small to medium businesses that were using these payment plans to third party payment apps to make money. This is absolutely huge.

Now it says under ARPA reporting threshold, TPSOs, which are a type of PSE, were required to file the form 1099-K for any payee that received more than $600 in total payments for the sales of goods or services, regardless of the numbers of transactions. This put a lot of people that had side hustles just on the side, maybe buying something at a garage sale and selling it on eBay. All of a sudden, in the crosshairs of the IRS, and it stopped a lot of people from trying to start a business or a side hustle. Now that has been released.

It’s going back to the old numbers. And I couldn’t be happier. Look, the truth of the matter is, there should be nothing to stop you from living the American dream and building a business. And you know how that starts? From something small. I remember taking, I wish I had it here, I bought electric trains from a toy store and flipped them on eBay for double the amount in 1999. And I built up such an amount of electric trains that I bought my first house with it. Then I bought my first rental, second rental, up to 14 properties after that.

I understand how important it is to start small. And this new change in the 1099-K is an absolute bombshell exciting time. I suggest in 2026, you take the bull by the horns and start crushing it. Use this move from the big beautiful bill to go and start starting small businesses, build business. And one of the things you need to learn is how to do your taxes right, pay less in tax if you want between crypto and tax planning. I’ll put together that bundle of two courses. I’ll put a link down below for watching this video if you want to expand your knowledge and go to that next level of your side hustle or business.

That’s the information you need. All right. With that being said, thank you so much for watching. The Economic Ninja is out. [tr:trw].

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