Trump tax change eases 1099-K reporting for gig workers and online sellers

A recent tax-policy change tied to the Trump administration relaxes reporting requirements for third-party payment platforms, reducing the number of 1099-K forms that many casual sellers and gig workers will receive. The adjustment targets the administrative burden on people who earn modest, intermittent income from side gigs, online marketplaces and peer-to-peer payment apps.

Under prior reporting rules, payment processors were required to issue 1099-K forms when user receipts exceeded certain thresholds. The updated policy raises or eases that trigger for issuing forms, meaning platforms will no longer have to report many low-dollar, occasional transactions to the IRS. For everyday sellers — swapping used goods, selling handmade items, or doing a few rideshare or delivery gigs — this can prevent an unexpected stack of tax forms and simplify year-end recordkeeping.

It’s important to understand what the change does and does not do. The adjustment reduces when third-party networks must furnish a 1099-K, but it does not change taxpayers’ fundamental obligation: all income remains taxable unless specifically excluded by law. Casual sellers and gig workers should still track earnings, expenses and receipts so they can accurately report net income on their tax returns.

Tax professionals say the practical benefits include fewer nuisance forms, easier reconciliation of accounts and less administrative work for small-scale sellers. But there are caveats. Platforms may still collect transaction data for internal use or to satisfy state reporting rules. And some payment companies might continue voluntary reporting or issue statements that users should keep for their own records.

If you rely on side income, take three basic steps: keep clear records of each transaction and related expenses, consult a tax advisor if your side business grows, and watch for guidance from the IRS and your state tax authority. For many people, the policy change will be a welcome simplification — but it’s not a tax exemption. Treat it as relief from paperwork, not from tax responsibility.