Ticketmaster 1099-K: A guide to 1099-K reporting for sellers

Key takeaways

• For the 2024 tax year, you plan to get a Form 1099-K from Ticketmaster should you receive more than $5,000 from reselling tickets through them at some stage within the year.
• You are handiest taxed on the profit you make from ticket sales, no longer the overall sales amount.
• Even should you do not receive a Form 1099-K, you continue to should report payments out of your ticket sales for your tax return and pay tax on any profit.
• Keep detailed records of the amount you paid to your tickets, how tons you sold them for, and any related expenses to accurately determine your taxable profit.

Waiting for a 1099-K from Ticketmaster?

Whenever it's possible you should be reselling tickets online for live events like concerts, sporting events, or the theater, receiving a Form 1099-K means you had a busy year! For the 2024 tax year, the IRS plans to require companies running payment apps and online marketplaces – including ticket exchange or resale web sites like Ticketmaster – to send Form 1099-K to anyone who received payments from them totaling more than $5,000 at some stage within the year (more than $20,000 and over 200 transactions for 2023 and earlier years). (More on the payment threshold after 2024 in a minute.)

Turbo Tax Tip: States may set their own 1099-K thresholds and requirements. In some cases, the payment thresholds are different than the federal amount, or the requirements are according to whether state income taxes were withheld out of your payments. Seek advice from the state tax agency where you reside for more information.

Whenever you sell enough tickets through Ticketmaster to trigger the 1099-K requirement, the company should provide a duplicate of the form to you by Jan. 31 of the following year (so by Jan. 31, 2025, for tickets sold in 2024). The IRS gets a duplicate of the form, too. And since Ticketmaster doesn’t know how tons you to initiate with paid for the tickets, it would send a 1099-K to you and the IRS even should you didn’t make a profit selling tickets on its web page.

Alternatively, if your total payments from Ticketmaster don’t exceed the year’s reporting threshold, maybe no longer receive a Form 1099-K for that tax year (though the company would maybe still send you one). Alternatively, even should you don’t receive a 1099-K form, any take advantage of of the sale of tickets or other goods or products and services is taxable – so you’ll still should report it for your federal income tax return.

What information is included for your Ticketmaster 1099-K form?

Whenever you receive a Form 1099-K from Ticketmaster, it would show the overall amount of all of your payments from Ticketmaster transactions for the tax year in Box 1a. The total amount may perhaps also be broken down by month in other places on the form.

The amount in Box 1a would not consist of any adjustments for fees, credits, refunds, shipping, cash equivalents, discounts, or the like. It also doesn’t account for any expenses related to your ticket sales, resembling the amount you paid to buy the tickets within the primary place. You are prepared to should keep detailed records of those items, that means that you will maybe be deducted from the overall amount in Box 1a when calculating your taxable income.

To boot, the overall payments reported in Box 1a don’t consist of any amounts paid to you from other ticket sales that didn’t pass through Ticketmaster. These payments – minus adjustments and expenses – most often should be added to the amount shown for your Ticketmaster Form 1099-K while you file your tax return for the year.

Plus, among other things, your Form 1099-K from Ticketmaster also can show (if applicable):

• your Ticketmaster account number (required while you will want the capacity to have multiple accounts)
• how many Ticketmaster transactions you had for the year (no longer including refund transactions)
• federal and/or state income tax withheld out of your payments

An answer to report payments from Ticketmaster for your tax return

Whether or no longer you receive a Form 1099-K, payments you receive from Ticketmaster should be reported for your federal tax return. Alternatively, you handiest should pay tax on the profit you make, which is in most cases the variation between the amount you received for selling tickets and the amount you to initiate with paid for them.

So, as an instance, should you bought tickets for $5,000 and sold them for $7,000 through Ticketmaster, your taxable income from those ticket sales is handiest $2,000 because that’s your profit ($7,000 - $5,000 = $2,000 profit). That’s the case no matter the actual fact that your Ticketmaster 1099-K form reports $7,000 in payments in Box 1a.

The way you report payments received through Ticketmaster is dependent on whether you’re selling tickets as component to a business or if they’re personal sales of tickets.

Business sales of tickets

Whenever you’re essentially running a web based business buying and selling tickets as a sole proprietor, you’ll report the payments you received from Ticketmaster, the amount you paid for the tickets, and any related expenses on Schedule C (Form 1040).

Whether you finally find yourself with an overall gain or loss out of your business, the amount calculated on Schedule C is transferred to Schedule 1 (Form 1040) of your own income tax return. From there, it will definitely gets rolled into your taxable income for the year.

Personal sales of tickets

Whenever you’re no longer running a ticket resale business – like most those who sell tickets through Ticketmaster – how you report payments from Ticketmaster is dependent on whether you made money on all of your ticket sales, lost money on all of your ticket sales, or had a mixture of profits and losses.

All sales for a profit. Congratulations should you made a profit on all of your Ticketmaster sales. Let's say, should you paid $100 each for four tickets ($four hundred total) and sold all of them for $a hundred and ten each ($440 total) for an entire profit of $40 ($440 - $four hundred = $40 profit). If that's the case, your profits are reported on Form 8949, which is then carried over to Schedule D (Form 1040). From there, they’ll be reported as a capital gain for your Form 1040.

All sales for a loss. What if all of your Ticketmaster sales trigger off a loss? Let's say, should you paid $100 each for four tickets ($four hundred total) and sold all of them for $90 each ($360 total) for an entire lack of $40 ($four hundred - $360 = $40 loss). If that's the case, maybe no longer owe tax on the $360 in payments from the sale – but maybe’t deduct the $40 loss out of your other taxable income, either.

No matter the truth that there’s no taxable income or deductible loss, you continue to should report the loss out of your ticket sales for your federal income tax return. To do that, maybe report the overall payments received from those sales as “other income” on Part I of Schedule 1 (Form 1040), and then report the identical amount as “other adjustments” on Part II of Schedule 1. The 2 items will cancel each other out so you don’t have any taxable income or deductible losses.

As another, maybe also use Form 8949 versus Schedule 1 to report ticket sale losses (the loss on Form 8949 will carry over to Schedule D). This is able to maybe be simpler should you’re already required to file Form 8949 and Schedule D for other reasons. Alternatively, as with Schedule 1, you plan to make certain that you don’t find yourself with any taxable income or deductible losses out of your ticket sales. It really is accomplished by following the steps for reporting Form 1099-K payments described within the instructions for Form 8949.

Mixture of profit and loss. Whenever you sold some tickets at some stage within the year for a profit, but besides sold other tickets at a loss, the loss can’t be used to offset your profits. So, for that reason, you plan to separate your profits and losses earlier than reporting them as described above. That way, the profits are taxed, while the losses aren’t deductible and don’t offset your profits.

Let's say, suppose you paid $100 each for four tickets ($four hundred total). You sold two of the tickets for $a hundred and ten each ($220 total) for an entire profit of $20 ($220 - $200 = $20 profit). Alternatively, you sold the other two tickets for $90 each ($one hundred eighty total) for an entire lack of $20 ($200 - $one hundred eighty = $20 loss). Overall, you broke even, because you spent $four hundred on tickets and received $four hundred while you sold them. But for tax purposes, report the sale of the tickets that resulted in a profit on Form 8949 and Schedule D, and owe tax on the $20 profit. You may maybe report the sale of the tickets that resulted in a loss on Schedule 1 with $one hundred eighty in both Part I and Part II (or use Form 8949 and Schedule D), but there can be no tax consequences for those sales.

What should you receive an incorrect Form 1099-K from Ticketmaster?

Contact Ticketmaster to ask for a corrected form if they send you a 1099-K form with an error on it. You may perhaps keep a duplicate of the corrected form and any correspondence you will want the capacity to have with Ticketmaster in regards to the error.

In case maybe’t get a corrected form, do not wait to file your taxes. Complete your return using the most effective information. Alternatively, make certain that you will want the capacity to have records to prove that your figures are accurate, since the IRS would maybe question why the guidelines for your return doesn’t match with the guidelines on the copy of Form 1099-K that it received.

Also let Ticketmaster know if they sent you a 1099-K form by mistake otherwise you produce other questions in regards to the form.

Who else would maybe receive a 1099-K form?

There are most often three the reason why you’ll receive a 1099-K form. First, as described above, is should you receive payments for goods you sell, products and services you provide, or property you rent through a payment app or online marketplace exceeding that year’s 1099-K payment threshold. Personal payments from family and friends – resembling a gift or reimbursement for a meal at a cafe – aren’t payments for goods or products and services, so that they shouldn’t be reported on Form 1099-K.

Consistent with the IRS, payments triggering a 1099-K form for that reason will likely likely be received through any:

• payment app
• online community marketplace
• craft or maker marketplace
• auction web page
• car sharing or ride-hailing platform
• ticket exchange or resale web page
• crowdfunding platform
• freelance marketplace

So, as well as Ticketmaster, maybe also receive a Form 1099-K from eBay, PayPal, Etsy, Venmo, Uber, StubHub, Airbnb, and other web web sites, apps, or platforms that facilitate payments for goods and products and services.

You are prepared to also also are expecting a 1099-K form out of your payment processor – resembling a bank or credit card company – should you run a business and customers or clients pay you by credit, debit, or gift cards. There aren't any dollar or transaction thresholds associated with 1099-K forms sent for that reason.

To boot, maybe receive a 1099-K form from a payment app, online marketplace, or payment processor should you’re receiving payments from them and you’re subject to backup withholding.

New $600 threshold for Form 1099-K

As component to the American Rescue Plan Act of 2021, the sting for sending a Form 1099-K turned into changed from payments over $20,000 from more than 200 transactions to payments over $600 no matter the collection of transactions. A significantly larger collection of people will get a 1099-K form below the new same old.

Alternatively, the IRS has delayed implementation of the new threshold to allow for a transition period. So, for the 2022 and 2023 tax years, the old threshold turned into used. For the 2024 tax year, as noted earlier, the IRS intends to make use of a $5,000 payment threshold, without regard to the collection of transactions.

At this point, we don’t know if the new $600 threshold will apply for the 2025 tax year. The IRS would maybe use a $5,000 threshold or give you the other amount for 2025. So, stay tuned for more information!

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