As a result of the American rescue plan act of 2021 (also known as the COVID relief bill), small businesses or freelancers (that get paid from a digital payment service of a third-party settlement provider that accepts credit cards on their behalf) are now required to report and fill out a 1099-k once they exceed $600 (even if it’s only a SINGLE transaction) in gross income from sales in one YEAR. Previously, the threshold was much higher, at receiving more than $20,000 in payments AND 200 or more transactions to receive a 1099-k form from a payment network. 

This is an astronomical change, and will effect small businesses tremendously. I know from first-hand experience how stressful and absurd this new tax threshold is. 

My mom is disabled from witnessing a very traumatic event, which resulted in her having severe PTSD. She is currently on disability, since she is unable to work. She has a small business on the online selling platforms Mercari and Poshmark. To her, it is much more than just a small business. She has made friends, talks to people she can relate to, and feels as though she’s been giving a sense of purpose. Since she cannot work, these selling platforms are her way of helping provide a little bit more for us, while also helping her mentally. She makes NOWHERE near $20,000 a year (the previous threshold), and is now at risk of having to discontinue her small businesses as a result of this new tax law. This is absolutely devastating to her because most of her friends businesses/ closets on these sites have already closed down, and because her social security disability is at risk (which we honestly don’t know how we’ll survive without), and because this is what helps her, feel her. 

I’m an 18 year old soon-to-be college student. I sell a few things on the side, and this new tax law will also effect me tremendously. I’m relying HEAVILY on financial aid to be able to afford college. I sell a few things on the side, and I’ve never even made it past $600 a year. Unfortunately, if I do pass this amount, my financial aid will be at risk, and I will be struggling even further to support myself financially. 

This is just my mom and I’s stories about our struggle with the new tax law. I know many other people in the same position, and know than many more soon will be too. A lot of small businesses owners rarely reach $20,000 a year, but $600 is just an absurdly low amount for the new tax threshold. 

if you support small businesses, people with side-hustles, or yourself understand how this will drastically affect side-hustlers and small businesses owners, please help me with my goal of reversing the tax threshold. 

thank you, and please consider signing :)