Ticket Reselling Will Trigger a New IRS $600 Income Reporting Threshold — Effective Immediately

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IRS tax witholding ticket resellers new threshold

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Photo Credit: Kelly Sikkema

Ticket resellers could be in for some tax surprises from the IRS because of new reporting requirements going into effect. Here’s the latest.

The American Rescue Plan of 2021 changed the reporting threshold for third-party settlement organizations (TPSOs). The previous threshold of more than 200 transactions per year and exceeding an aggregate amount of $20,000 is now just $600. That means ticket resellers who sold one Taylor Swift or Beyonce ticket are likely in for some surprises on their 2023 taxes. The reporting requirement is also triggered by the sale price, not the seller’s profit.

Taylor Swift tickets average a resell price of $1,035 per ticket on StubHub. Beyonce tickets average around $380 per ticket, so selling a pair would trigger the reporting requirement. Harry Styles reseller prices hover around $450. Wall Street Journal reports this was a banner year for live events—not just concerts, either.

Fan sellers accounted for about 70% of the ‘Eras Tour’ ticket orders on StubHub, according to that report. StubHub told the WSJ that number was about double the number of fan resellers it typically sees for concert events.

Any fan who sells tickets for more than $600 will receive a 1099-K form from the platform they used to resell the ticket. Professional ticket brokers are used to dealing with these reporting requirements—but it’s a new requirement for John Q. Taxpayer. The move comes as the IRS implements new reporting requirements for TPSOs.

While the new income threshold was delayed in 2022, it’s unclear how long the reporting threshold will remain that low. There is currently bipartisan legislation in the Senate that would raise the reporting threshold to $10,000 in a year or 50 transactions. Several businesses have also formed the Coalition for 1099-K Fairness, which is lobbying Congress for a higher reporting threshold.

Reselling tickets for a profit has always been taxable income, but the new requirements make it easier for the IRS to see that income. The IRS says it will provide more guidance to tax payers closer to the 2024 tax filing season.