News

A New U.S. Law Will Tax Any Ticket Reseller Making Over $600 Per Year

To crack down on ticket scalping across the country, a new law will tax anyone making more than $600 each year through ticket-selling websites like StubHub and Ticketmaster, according to the Wall Street Journal

As part of the American Rescue Plan Act, the Internal Revenue Service (IRS) now requires that ticketing companies report these users with a 1099-K form that asks for information on “payment card and third-party network transactions.” The reporting requirement is triggered by sale price and not just the seller’s profit. 

The filing of a 1099-K form was previously required only for those making more than $20,000 on 200 or more transactions each year. The IRS explained that “there are no changes to what counts as income or how tax is calculated.

The new law will apply to the 2023 tax year, with forms set to be sent out in early 2024. According to the Wall Street Journal, industry groups and critics of the new law say it is inconvenient for companies and confusing for customers. 

While sending and receiving tax forms between ticket marketplaces and professional ticket sellers is commonplace, tax reporting is new for many individual sellers.

TickPick’s Chief Financial and Administrative Officer, Michele Rusnak, said the company is likely to issue at least ten times as many 1099-K forms this year compared to previous years. The IRS estimates it will receive 44 million of these forms under the new law, rising from 11.1 million in 2021.

The new tax reporting requirement will apply to payment processors and e-commerce sites like eBay and Airbnb.

Featured image from Pexels.com.

Written by
Peter Volpe

Ohio-based writer and journalist with a passion for culture and fat basslines.

Related Articles

Verknipt Croatia
Music FestivalsNews

Verknipt Croatia Returns For Beachfront Hard Techno Showcase This Weekend

Verknipt Croatia is back on Zrce Beach for a week-long, waterfront hard...

French Touch
News

French President Calls For The “French Touch” To Be Recognized By UNESCO

French president Emmanuel Macron has voiced his support for French house music...

EDC Orlando
Music FestivalsNews

Insomniac Drops Full Lineup For EDC Orlando 2025

Insomniac has shared the full lineup for EDC Orlando 2025. Expected to...

JobsNews

Now Hiring: Junior Graphic Designer (Part-Time, Remote)

Junior Graphic Designer (Part-Time) Location: Remote | Hours: 15–20 per week |...