Legislation recently reintroduced in the U.S. House of Representatives that would repeal the portion of the American Rescue Plan policy that pertains to gig workers’ taxes.
The Saving Gig Economy Taxpayers Act would revert the 1099-K threshold level back to $20,000 and 200 transactions instead of the $600 established by the American Rescue Plan.
“I’m reintroducing the Saving Gig Economy Taxpayers Act to protect Americans who use online payment platforms, gig economy workers, and small e-commerce sellers to ensure they have access to reliable income streams,” U.S. Rep. Carol Miller (R-WV), who introduced the bill along with 24 Republican colleagues, said. “Because Democrats’ lowered the 1099-K threshold, an American selling old exercise equipment from his garage online now qualifies as a salesman of workout equipment, a teenager babysitting the neighbors’ kids has a childcare business, and roommates who split rent are now property managers — and all of them will be receiving 1099-K forms from the IRS. The Republican led House will restore the 1099-K threshold to the time-tested amount of $20,000 and 200 transactions.”
The bill has the support of the Coalition for 1099-K Fairness, Block Inc., Etsy and eBay.
The bill was referred to the House Committee on Ways and Means.