New IRS rule on reselling concert, sporting event tickets could impact large number of Americans
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People who have made money from reselling tickets to concerts or sporting events this year will face new scrutiny from the Internal Revenue Service (IRS) when it comes time to file their 2023 taxes.
A newly implemented law lowered the tax reporting thresholds for users of e-commerce platforms, including event ticketing websites like Ticketmaster and StubHub, by requiring those platforms to provide information on sellers’ proceeds to the IRS if their ticket sales in 2023 were worth more than $600. The previous reporting threshold applied to users with $20,000 in revenue and more than 200 transactions, but the new threshold can be triggered with just one transaction if it tops $600.
Under the rule, ticketing platforms will be required to report sellers’ proceeds of $600 or more over the course of the year and send them a 1099-K form regardless of whether they earned a profit. However, sellers will only owe additional taxes if they made a profit by selling a ticket for more than they paid for it.
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Ticket resellers using platforms like Ticketmaster and StubHub will receive 1099 forms from the IRS if their revenue from sales exceeds $600 in 2023. (Mateusz Slodkowski / SOPA Images / LightRocket via Getty Images / File | Reuters / Erin Scott / File / Getty Images)
The lower threshold and reporting changes may cause confusion among concertgoers and sports fans who have bought and sold tickets over the course of 2023 – which has seen strong demand for live events that range from professional and college sports to Taylor
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