Saving Gig Economy Taxpayers Act

The Saving Gig Economy Taxpayers Act aims to reverse changes made to tax reporting requirements for third-party settlement organizations, such as Venmo, PayPal, eBay, and Etsy. Under current law established by the American Rescue Plan Act of 2021, these platforms are required to send a Form 1099-K to any user who receives more than $600 in a year for goods and services. This bill proposes to reinstate the previous, higher threshold, which only required reporting if a user received at least $20,000 from 200 or more transactions.

If enacted, the bill would significantly reduce the number of tax forms sent to casual sellers, gig workers, and small business owners. Proponents argue this would prevent taxpayers from receiving confusing forms for non-taxable activities, such as selling used household items or splitting personal expenses. By raising the reporting floor, the legislation seeks to minimize the administrative burden on both the IRS and everyday citizens who use digital payment platforms for occasional or low-volume sales.