The Informed Investor
According to Bloomberg Law News, 11/21/2022, people who have resold tickets to concerts or sporting events on PayPal, Venmo, StubHub, Ticketmaster, or other third-party payment networks. will be receiving a 1099-K to file with their 2022 income taxes. Sellers may not realize that any money they make is subject to income taxes.
Starting in tax year 2022, anyone making more than $600 in a calendar year on the resale of tickets or other goods or services will be receiving a 1099-K to be filed with their income tax return. Previously the threshold was $20,000 which was reduced to $600 starting for 2022 filings.
You could easily surpass the new threshold by reselling one ticket to a concert or sporting event. Massive demand for events has seen tickets going for thousands of dollars above their face value.
Any profit made from reselling concert or sporting event tickets or other goods and services are taxed as ordinary income, said Chris Diodato, with WELLth Financial Planning in Palm Beach Gardens, FL. Federal income tax rates can range from 10% to 37% based on your income and marital status.
Those who receive a 1099-K definitely need to report it, he said. Technically, any income in a calendar year is supposed to be reported.
Bloomberg Law News 2022-11-21 By Claire Ballentine