What Happened?

After years of flip-flopping, Congress hit the reset button. For 2025, payment processors (PayPal, Venmo, Etsy, etc.) only issue a 1099-K if BOTH are true:

• $20,000 in payments, AND
• 200+ transactions.

Who Cares?

• Side hustlers selling crafts on Etsy? Fewer surprise tax forms.
• Uber drivers? Still likely to cross the threshold.
• Your grandma selling knitted hats once a year? She’s safe.

NJ Reality

New Jersey usually conforms to federal rules, but keep those books clean. The Division of Taxation is not known for its sense of humor.

Example

Sam sells sneakers online: $19,999, 199 sales. No 1099-K. Sam sells one more sneaker for $100 → boom, 1099-K. Sam cries.

Disclaimer: This blog is for educational purposes only and should not be considered legal or tax advice.
Need help? Email info@taxzingerpro.com or dial 1-800-511-3928.