1099-K Repeal: What It Means for Small Businesses and Airbnb Hosts in Cardiff, CA

If you’re a small business owner in Cardiff-by-the-Sea, you may have heard some buzz about the “1099-K repeal.” But what does it really mean for you — and how should you prepare?

Let’s break it down.

What is Form 1099-K?

Form 1099-K is a tax form that reports payments you received through third-party networks like PayPal, Venmo, Square, and credit card companies.

In recent years, the IRS lowered the reporting threshold dramatically, meaning that even small transactions could trigger a 1099-K.

Under the previous rules:

• You only received a 1099-K if you had over $20,000 in payments and more than 200 transactions.

But under the newer rules (originally set to go into full effect in 2023), you would receive a 1099-K for any amount over $600, even with just one transaction.

Why Was There a Push for Repeal?

Small business owners, freelancers, and even casual sellers (think: selling an old couch on Venmo) were concerned about the confusion and paperwork.

The new threshold risked flooding taxpayers — especially small businesses — with tax forms that didn’t accurately reflect their real income.

Recognizing the burden, lawmakers proposed delaying or repealing these aggressive reporting changes.

What’s the Current Status?

As of early 2025, the IRS has delayed full enforcement of the lower $600 threshold.

• For 2024 tax filings, the IRS has announced a threshold of $5,000 as a transitional step.

• Discussions about a full repeal or a permanent higher threshold are still ongoing.

In short: the strict $600 rule is not being fully enforced yet — but you should stay prepared.

Who Benefits From the 1099-K Repeal?

✅ Airbnb rental income owners in California

✅ Uber/Lyft drivers and other gig workers

✅ Online sellers using PayPal, Venmo, Stripe

✅ Small business owners here in Cardiff-by-the-Sea, CA (92007)

What This Means for Cardiff Business Owners

If you run a small business in Cardiff, Encinitas or North County— whether you’re a retailer, consultant, or gig worker — you need to:

• Track your income carefully. Even if you don’t receive a 1099-K, you’re still required to report all taxable income.

• Separate business and personal transactions. Use dedicated business accounts for Venmo, PayPal, or credit card sales.

• Work with a local tax pro. The rules are evolving. A knowledgeable accountant can make sure you stay compliant without overpaying.

How Cardiff Tax Pros Can Help

At Cardiff Tax Pros, we specialize in helping local businesses stay ahead of tax law changes.

Whether you need help sorting through 1099-K forms, keeping your bookkeeping clean, or filing your taxes, we’re here for you.

Don’t let confusing paperwork trip you up.

Contact Cardiff Tax Pros today for expert, friendly support right here in Cardiff-by-the-Sea!

FAQ

What exactly is the 1099-K repeal, and when does it take effect?

The 1099-K repeal refers to legislation delaying or reversing the IRS’s plan to require third-party payment processors to issue Form 1099-K for transactions over $600. For 2024 filings, the IRS announced a temporary threshold of $5,000; a full repeal is still under discussion.

Who will still receive a 1099-K this year?

In 2024, you’ll get a 1099-K only if you process more than $5,000 in gross payments through third-party networks (e.g., PayPal, Venmo, Square) and meet the existing 200-transaction rule. The aggressive $600 threshold is on hold for now.

If I don’t get a 1099-K, do I still have to report the income?

Yes. You must report all taxable income on your return, regardless of whether you receive a 1099-K. Keep detailed records of your sales and payment receipts to ensure nothing is missed.

How can I separate business from personal transactions?

Use dedicated business accounts or merchant portals for any sales-related transactions. Never mix personal spends (like splitting dinner with friends) with your business payment account—that makes bookkeeping and audits much easier. Read more in our article about separating personal expenses from business expenses.