Ticketmaster is one of the largest ticket sales and distribution companies in the world. Many people and businesses sell tickets through Ticketmaster each year. This leads to the question – does Ticketmaster require you to fill out a 1099-K tax form for ticket sales? The short answer is, in most cases, no. Ticketmaster does not directly issue 1099-K forms to ticket sellers. However, there are some nuances to consider.
What is a 1099-K form?
The 1099-K form is an IRS tax form used to report payment transactions to the IRS. More specifically, Form 1099-K is used to report payment transactions to anyone who accepts third-party network payments. This includes transactions processed through digital wallets, online marketplaces, payment apps, and credit card processing networks.
The 1099-K requirements were originally created to increase reporting of income from the sharing economy and online sellers. Companies like Uber, Etsy, eBay, Airbnb, and PayPal are required to issue 1099-K forms to users who exceed $20,000 in gross sales and over 200 transactions in a calendar year. This allows the IRS to better track income from gig economy work and online selling that may not get reported otherwise.
Does Ticketmaster issue 1099-K forms?
In most cases, no. Ticketmaster does not directly send 1099-K tax forms to ticket sellers. This is because Ticketmaster is acting as an intermediary platform, not the actual merchant or recipient of the income.
The entity responsible for issuing 1099-Ks is the merchant ultimately receiving the income from the ticket sales. For example:
- If an artist or band sells tickets to their own event through Ticketmaster, they would be responsible for issuing 1099-Ks to report that income, not Ticketmaster.
- If a sports team sells tickets to their games through Ticketmaster, the sports franchise would have to issue 1099-Ks, not Ticketmaster.
- If an individual sells tickets through a Ticketmaster resale marketplace, it would be their responsibility to claim that income and issue themselves a 1099-K if needed.
Ticketmaster is simply providing the platform and processing payments on behalf of these merchants. The income is ultimately going to the event organizer or ticket seller, not Ticketmaster itself. So Ticketmaster does not have an obligation to issue 1099-K forms in most cases.
When would Ticketmaster issue a 1099-K form?
There are some limited situations where Ticketmaster may issue a 1099-K form, including:
- If Ticketmaster is the direct merchant selling the tickets and receiving the income. For example, this could occur if Ticketmaster owns the tickets and acts as the primary seller.
- If Ticketmaster facilitates ticket resales through a marketplace and holds the funds until transferred to the seller.
- If Ticketmaster provides other reportable payment services resulting in over $20,000 in gross income and 200+ transactions.
However, in the vast majority of cases, Ticketmaster is simply acting as an intermediary platform between ticket buyers and the merchants selling the tickets. So 1099-K reporting would fall to those merchants earning the income, not Ticketmaster itself.
Do individual ticket resellers need to issue a 1099-K form?
If an individual is reselling tickets through Ticketmaster or other secondary markets, they may be responsible for issuing themselves a 1099-K if they exceed $20,000 in gross sales and 200 transactions in a year.
For example, if you buy and resell tickets as a side business and make over $20,000 doing so with Ticketmaster, you should report that income to the IRS and may need to issue yourself a 1099-K. In this case, Ticketmaster facilitated the transactions but was not the merchant actually receiving the income.
As a ticket reseller, it is your responsibility to track sales, report income, and file 1099-Ks if your activity warrants it.
Key takeaways
Here are some key points to remember about 1099-Ks and Ticketmaster:
- Ticketmaster does not directly issue 1099-K forms in most cases.
- The entity receiving the actual ticket income is responsible for issuing 1099-Ks.
- Individual resellers may need to self-issue 1099-K forms if reselling over $20,000 in tickets.
- Ticketmaster may issue 1099-Ks in limited cases where they are the merchant or hold funds.
- Talk to a tax professional if you have questions about 1099-K requirements.
What are the 1099-K reporting thresholds?
The 1099-K reporting requirements depend on meeting certain thresholds in a calendar year:
- Gross payments over $20,000 – This includes the total payments received, not just profit.
- More than 200 transactions – The number of individual payment transactions.
You must meet both the gross income and transactions thresholds to trigger the 1099-K reporting requirement.
For example, if you had gross ticket sales of $30,000 through Ticketmaster with only 150 transactions, you would not meet the criteria to receive a 1099-K.
These 1099-K thresholds were put in place to exclude small-scale activity. So if you just occasionally resell tickets as a hobby or side gig and don’t exceed $20,000 in sales, 1099-K reporting likely does not apply to you. But if ticketing activity becomes more regular side income, it’s important to track transactions and sales volumes to determine if 1099-K filing is required.
What information is included on the 1099-K form?
If you do meet the requirements and need to file a 1099-K, either for yourself or ticket buyers, here is some of the key information it must contain:
- Your legal name and address
- The service recipient’s legal name and address (could be yourself)
- Payment settlement entity’s name and phone number (could list Ticketmaster)
- Total number of payment transactions
- Gross amount of reportable payment transactions
copies of the 1099-K form must be provided to the IRS and to the payment recipient by January 31st for the previous tax year. The recipient will use the form to report the income on their tax return.
How will I know if I should receive a 1099-K for ticket sales?
Unfortunately Ticketmaster itself does not directly notify sellers about 1099-K requirements. Here are some tips to make sure you comply with 1099-K reporting if needed:
- Carefully track your gross ticket sales through Ticketmaster for the year.
- Count the number of separate ticket transactions.
- If you exceed 200 transactions and $20,000 in gross sales, you likely meet the 1099-K thresholds.
- Consult a tax professional to be sure if 1099-K filing applies to your situation.
- Self-issue a 1099-K if you meet the criteria and Ticketmaster does not provide one.
Staying organized with your Ticketmaster ticket sales activity will help you determine if you cross the 1099-K thresholds. Don’t assume you will receive a 1099-K form from Ticketmaster itself. Be proactive tracking your sales volume and transactions so you properly report income and issue 1099-Ks if required.
What are the penalties for not filing a 1099-K form?
If you are responsible for issuing 1099-K forms to report your ticket sales income and fail to do so, there can be penalties from the IRS:
- Up to $280 per form not filed
- Up to $3.392 million for large organizations
- Loss of tax deductions related to the unreported payments
These penalties are in place to encourage proper income reporting. The IRS can waive penalties if you can show reasonable cause for not filing 1099-Ks. But in general it is best to ensure you comply with 1099-K requirements if your ticket sales volume warrants it.
Can I get help with 1099-K filing?
If you have questions or need assistance with 1099-K reporting for your ticket sales, here are some options:
- Work with an accountant or tax professional who understands 1099 reporting.
- Use tax preparation software that helps generate 1099-K forms.
- Hire a 1099 filing service to handle the process for you.
- Consult IRS instructions and publications for 1099-K requirements.
- Reach out to Ticketmaster support with any questions, if applicable.
Even if Ticketmaster does not send you a 1099-K directly, make sure you understand the requirements and seek help if needed. Proper 1099-K filing avoids headaches down the road if the IRS inquires about unreported income.
Frequently Asked Questions
Do I need to report ticket sales below $20,000 and 200 transactions?
If you stay under both the $20,000 gross income and 200 transaction thresholds, the 1099-K reporting requirements do not apply. However, you still must report and pay taxes on any taxable income from selling tickets, even below those thresholds. The 1099-K is an added reporting requirement once your activity exceeds those volumes.
What if I sell tickets through multiple platforms?
If you sell tickets through Ticketmaster, StubHub, Vivid Seats, and other platforms, your activity on all marketplaces needs to be counted towards the 1099-K thresholds. You cannot treat each platform separately. Multiple channels must be aggregated to determine if your total sales and transactions across all platforms exceeds the 1099-K criteria.
Do I have to register a business to receive a 1099-K?
No, you do not need a registered or incorporated business to receive a 1099-K. The form simply reports your income activity. Sole proprietors, freelancers, independent contractors, and even individuals selling tickets for side income can receive 1099-Ks if they meet the sales and transaction requirements. Business formation is not a prerequisite.
Can I deduct expenses reported on a 1099-K?
Yes, any ordinary and necessary business expenses can be deducted against 1099-K income, just like other business income. For example, if you buy tickets for resale, the cost of the tickets and fees related to the sales are deductible. Keep detailed records of any expenses to subtract from 1099-K reported income.
Is the income on a 1099-K subject to self-employment tax?
1099-K reported income is generally considered self-employment income. So in addition to income tax, you also owe 15.3% self-employment tax on the net income. This is the equivalent of Social Security and Medicare tax that employees have withheld. Make sure to account for this extra tax when filing.
The Bottom Line
In summary, Ticketmaster itself does not issue 1099-K forms in most situations. The merchants actually receiving ticket income are responsible for any required 1099-K reporting. However, large volume ticket resellers may need to self-issue 1099-Ks if they exceed $20,000 in gross annual sales and 200 transactions across all marketplaces. Carefully track your sales activity through Ticketmaster and other platforms to determine if you cross these 1099-K thresholds. Follow the IRS requirements to properly report income and avoid penalties for non-compliance. Reach out to a tax professional if you need assistance with 1099-K filing related to your ticket sales.
