Ticketmaster, as one of the largest ticket sales and distribution companies, serves a huge number of customers every year. With tickets being sold online, over the phone, and at venues, Ticketmaster processes millions of ticket orders annually. This leads to the question – does Ticketmaster require 1099 info from the people and companies who sell tickets through their platform?
What is a 1099?
A 1099 form is an information return that is used to report various types of income other than wages, salaries, and tips. Examples of income that would be reported on a 1099 include:
- Interest income
- Dividends
- Royalties
- Rent payments
- Payments made to independent contractors
1099 forms are filled out by the payer and given to payees so they can properly report the income on their tax returns. The payer also sends a copy of the 1099 to the IRS to ensure the income is accounted for.
Does Ticketmaster issue 1099s?
In most cases, Ticketmaster does not issue 1099 forms to people or companies selling tickets through their platform. This is because Ticketmaster’s role is to provide the platform and handle ticket distribution, not make direct payments to sellers.
Here is a breakdown of how Ticketmaster’s process works:
- The event organizer or venue contracts with Ticketmaster to sell tickets and provide distribution services.
- Ticketmaster facilitates ticket sales through their website, app, phone lines, and in-person ticket offices.
- After tickets are sold, Ticketmaster collects the revenue and deducts their fees/commissions.
- The remaining ticket revenue is paid directly to the event organizer or venue, not individual ticket resellers.
Because Ticketmaster does not make payments directly to ticket brokers or individuals selling tickets, there is no need for them to issue 1099s for ticket sales. They are simply providing a distribution service, not acting as a formal “payer.”
When would Ticketmaster need to issue a 1099?
The only time Ticketmaster would potentially need to issue a 1099 is if they directly hired an independent contractor to perform work on their behalf. For example, if they hired a web developer as an independent contractor to work on their website, they would need to issue a 1099-NEC if they paid the contractor over $600.
This situation is rare, though, as Ticketmaster has in-house staff handle most of their regular business operations. The vast majority of Ticketmaster’s transactions are simply acting as an intermediary for ticket sales – not directly paying outside contractors. So 1099 reporting is not a regular part of their business.
Do ticket resellers need to report income from Ticketmaster sales?
If you sell tickets through Ticketmaster as an individual ticket broker, you are still required to report that income on your taxes. However, you will not receive a 1099 for these sales since Ticketmaster did not pay you directly. It is your responsibility to self-report the income.
The same applies to venues, event promoters, sports teams, etc. that contract with Ticketmaster. While they won’t get a 1099 from Ticketmaster, they still must claim the revenue as taxable income when they file taxes.
Other ticket sellers that issue 1099s
While Ticketmaster does not issue 1099s for ticket sales, other ticket selling platforms and services do issue 1099-K forms in certain situations.
For example:
- StubHub will issue a 1099-K if you exceed $20,000 in sales and process 200+ transactions in a calendar year.
- VividSeats will issue a 1099-K if you exceed $20,000 in gross sales in a calendar year.
- SeatGeek will issue a 1099-K for referral fees earned over $600 in a calendar year.
So if you are selling tickets through a platform like StubHub or VividSeats, be prepared to receive tax paperwork if you meet the reporting thresholds.
How to report Ticketmaster sales without a 1099
If you sold tickets via Ticketmaster in 2022, you still must legally report that income on your 2022 tax return. Here is how to go about reporting the income if you did not receive a 1099:
- Gather details on how much you made selling tickets in 2022. Log into your Ticketmaster account and find your full sales history for the year.
- Classify this income under the appropriate tax category. For individuals, it will likely be “Other Income” on Form 1040. For businesses, report it following your business structure – sole proprietorship, corporation, etc.
- Enter the total amount on the appropriate line of your tax return. Make sure it is properly included in your total taxable income calculation.
- Keep detailed records showing your Ticketmaster sales activities in case you are ever audited.
As long as you fully and accurately report your Ticketmaster ticket sales, you will have properly fulfilled your tax obligations even without receiving a 1099 form.
The bottom line on Ticketmaster and 1099s
In summary, here are the key points to know about Ticketmaster and 1099 reporting:
- Ticketmaster does not issue 1099 forms for ticket sales
- Sellers still must report Ticketmaster income on their tax returns
- Ticketmaster only issues 1099s if directly hiring contractors (rare)
- Other ticket sellers like StubHub do issue 1099-Ks to high-volume sellers
- Carefully track Ticketmaster sales to accurately report taxes
So while Ticketmaster will not be sending you any 1099s, make sure you fully account for any Ticketmaster sales activity to stay compliant with IRS rules.
Frequently Asked Questions
Does Ticketmaster report sales to the IRS?
Ticketmaster does not proactively report individual ticket sellers’ sales volume or earnings to the IRS. However, if the IRS requests sales records for a specific audit, Ticketmaster will likely provide the information they have available.
What if I only sold a few tickets through Ticketmaster?
Even if you only sold a few tickets or made less than $600 on Ticketmaster for the year, you still need to report the income. The 1099 reporting thresholds don’t apply when you do not receive a 1099 form. All ticket sale income must be claimed.
What Ticketmaster expenses can I deduct?
If you sell tickets as a business, you may be able to deduct associated expenses like ticket acquisition costs, payment processing fees, advertising, travel to events, and other qualified business expenditures. Consult a tax professional to understand what can be deducted for your situation.
Does Ticketmaster report sales under my SSN or EIN?
Since Ticketmaster does not issue 1099s for ticket sales, they do not report sellers’ activity under SSNs or EINs. You report Ticketmaster sales on your own tax returns under your identifying number.
What if I sell tickets through multiple platforms?
If you sell tickets through Ticketmaster, StubHub, and other platforms, make sure you are tracking sales carefully across all channels. Even if you don’t get a 1099 from Ticketmaster, those sales must be included in your tax filing along with any 1099-K income from other marketplaces.
Could I get audited for not reporting Ticketmaster sales?
It’s possible. If the IRS finds large unexplained deposits, cash expenditures, or other red flags, they may request Ticketmaster records to verify your sales activity. Not reporting income from any source can potentially lead to an audit, penalties, or even criminal prosecution for tax evasion.
Conclusion
In conclusion, Ticketmaster does not provide 1099 forms to ticket brokers or sellers using their platform. However, all ticket sales must be reported as taxable income even without receiving a 1099. Carefully track Ticketmaster activity and make sure to fully account for the earnings on your tax return.
Following IRS rules for reporting all income sources is critical, whether you receive a 1099 or not. With proper records and diligent reporting, Ticketmaster ticket sellers can stay compliant and avoid unnecessary audit risk.
