JRW III
Double Eagle Member
Buried in the last stimulus bill is a change to the thresholds for the 1099-K beginning in tax year 2022. The payee must be issued a Form 1099-K if the service processed more than $600 worth of payments regardless of the number of individual payments or transactions. Prior to this change, the threshold was $20,000 AND 200 transactions at the federal level (some states were lower).
Before the change, a club could run a few tournaments a year and not worry about anyone getting a 1099-K. Now, one tournament will likely trigger a 1099-K (assuming you use PayPal goods and services or something similar).
For the clubs who are already incorporated or have non-profit status, this change will not effect them much. Curious what some of the more casual clubs who only run a couple events will be doing next year?
Couple of background articles:
What is a 1099-K
How is Hobby Income Taxed
Before the change, a club could run a few tournaments a year and not worry about anyone getting a 1099-K. Now, one tournament will likely trigger a 1099-K (assuming you use PayPal goods and services or something similar).
For the clubs who are already incorporated or have non-profit status, this change will not effect them much. Curious what some of the more casual clubs who only run a couple events will be doing next year?
Couple of background articles:
What is a 1099-K
How is Hobby Income Taxed
