Ticketing platforms like Ticketmaster are required to issue 1099-K forms to users who exceed 200 transactions and $20,000 in gross sales in a calendar year. This requirement comes from the American Rescue Plan Act of 2021, which lowered the reporting threshold for third-party payment networks like Ticketmaster. So if you sold over $20,000 in tickets on Ticketmaster in 2022, you should expect to receive a 1099-K form from them in early 2023.
What is Form 1099-K?
Form 1099-K, also known as the Payment Card and Third Party Network Transactions form, is an IRS information return used to report payment transactions processed through a payment network. It shows the gross payments a person or business received through the network in a calendar year. Payment networks like Ticketmaster use 1099-Ks to report sales and income earned by users on their platforms to the IRS.
Some key things to know about 1099-K forms:
- They are issued by third party settlement organizations like Ticketmaster to users who exceed $20,000 in gross sales and 200 transactions in a calendar year.
- They report gross sales amounts – no adjustments are made for returns, cancellations, fees, refunds, chargebacks, or costs of goods sold.
- The reported amounts on 1099-Ks may not match your actual business income.
- You must report the gross amount listed on your 1099-K as income on your tax return.
Why did I receive a 1099-K from Ticketmaster?
If you received a Form 1099-K from Ticketmaster for 2022, it means you exceeded $20,000 in gross sales and 200 transactions on Ticketmaster tickets or services that year. This likely happened if:
- You are a professional ticket broker or reseller who sold over $20,000 in tickets on Ticketmaster in 2022.
- You resold tickets totaling over $20,000 on Ticketmaster as a side business or hobby.
- You purchased over $20,000 in tickets for personal use, business purposes, or as gifts.
Under the prior reporting threshold of 200 transactions and $20,000 and 200 transactions, most everyday Ticketmaster users would not receive a 1099-K. But with the threshold now only $20,000 in sales, more users will receive these tax forms.
Do I have to report the 1099-K amount on my taxes?
Yes, you are required to report the full gross amount shown on your 1099-K on your tax return, even if the amount seems too high. The 1099-K shows gross sales before any adjustments, so the income may be overstated.
You can account for discrepancies between 1099-K amounts and your actual income by deducting any returns, fees, refunds, chargebacks, and cost of goods sold on your Schedule C tax form. This will reduce your reportable business income to your true net profit amount.
If the 1099-K amount is incorrect and overreports your income, you can contact Ticketmaster to request a corrected 1099-K. You’ll need to provide documentation supporting the inaccurate amounts.
How does the 1099-K affect my taxes?
The primary tax impact of receiving a 1099-K from Ticketmaster is that you must report the gross sales amount as business income on your taxes. This often increases your reportable income versus only counting your actual profit.
Specific tax impacts include:
- Higher taxable business income reported on Schedule C or Schedule E.
- Higher self-employment taxes owed on the 1099-K sales amount.
- Higher estimated quarterly tax payments if your income increased above certain thresholds.
- Higher income reported, which could impact eligibility for tax credits and deductions.
However, you can offset some of this impact by deducting eligible business expenses like fees, shipping, advertising costs, and cost of goods sold. Proper documentation is key to claiming these deductions.
Should I report if I sold tickets at a loss?
Yes, even if you sold tickets at an overall loss once fees, costs, and unsold tickets are factored in, you still must report the full 1099-K amount. The IRS requires gross sales to be reported, before deductions.
To account for losses, you would report the 1099-K box 1a amount as gross income on Schedule C, and then deduct qualifying business expenses. This results in a net business loss on Schedule C that offsets other income on your return.
So don’t skip reporting 1099-K income even if you sold at a loss – follow the proper deduction process.
What if I didn’t actually sell over $20,000 in tickets?
It’s possible the 1099-K amount is incorrect and overreports your actual sales. Common reasons for inaccuracies include:
- Ticket cancellations and refunds not being excluded from gross sales.
- Fees, shipping, and processing costs being included.
- Duplicate or erroneous transactions counted.
If you believe the 1099-K is wrong, reach out to Ticketmaster to request a corrected 1099-K. Provide documentation like receipts, financial records, or bank statements proving the inaccurate amounts. Without a corrected form, you still must report the original 1099-K amount.
What if I used the tickets myself?
If you purchased tickets for personal use, as gifts, or for your business, the full amounts still get reported to the IRS on a 1099-K. Ticketmaster does not distinguish between tickets you resold versus used yourself when preparing 1099-Ks.
While inconvenient, this does not change how you should handle the 1099-K – the gross sales must be reported as income. There is no tax exemption just because you were the ticket end user.
Can I get audited if I don’t report it?
Yes, failing to report income shown on a 1099-K can potentially trigger an IRS audit or matching notice. Since Ticketmaster also sends the IRS copies of 1099-Ks issued, the amounts are visible to the IRS.
If the 1099-K income is not included on your tax return, the IRS computers will flag this mismatch. This could prompt them to send a letter or conduct an audit inquiring about the discrepancy.
To avoid issues, be sure to report your 1099-K amounts properly. Follow the deduction process if the income amount seems too high.
How long do I need to keep my 1099-K?
You should retain tax documents like 1099-Ks for at least 3 years after filing per IRS guidelines. For the 2022 tax year, you should store your 1099-K and any related documentation until at least April 2026 in case of an audit.
Good records are necessary to support income, sales, deductions, and expenses reported on your return. Digital copies of 1099-Ks and tax returns stored securely are perfectly acceptable.
Can I get a copy of a lost 1099-K?
If you misplaced your 1099-K from Ticketmaster, you can request another copy by contacting Ticketmaster and providing details like your full name, address, phone number, and account information. Most companies can reissue lost 1099 tax forms.
Make sure to keep the replacement 1099-K secure, as you are still required to report the income. If you cannot obtain a replacement before tax time, you can estimate the gross sales amounts based on your Ticketmaster transaction history.
What if I never received the 1099-K?
Ideally Ticketmaster will mail or email your 1099-K form by January 31st. But sometimes forms get lost or sent to outdated addresses. If you haven’t received your 1099-K by early February, follow up with their customer support.
Make sure they have your current contact information and request they resend it. If multiple requests fail, you can file your taxes using a reasonable estimate of your gross sales based on your records.
What address will the 1099-K come from?
1099-K forms are generally mailed from the headquarters address of the company issuing them. For Ticketmaster, that address is:
Ticketmaster L.L.C.
9348 Civic Center Drive
Beverly Hills, CA 90210
However, some users may receive emails with 1099-K forms attached rather than mailed physical copies. Check your Ticketmaster account dashboard for any notifications about tax documentation.
When will I get my 1099-K?
Third party payment networks like Ticketmaster must issue 1099-K forms by January 31st for the prior tax year. So you can expect your 2022 1099-K from Ticketmaster to arrive by January 31, 2023.
Ticketmaster may send some 1099-Ks out earlier in January. But if you don’t receive yours by the end of January, follow up with their customer service.
Who do I contact about errors on my 1099-K?
If your 1099-K from Ticketmaster contains any errors or inaccurate information, you should contact their customer support team. Explain what amounts are incorrect and request a corrected 1099-K.
Provide documentation like order receipts, bank statements, or sales records to support your claim. Ticketmaster will review your proof and issue a corrected 1099-K if merited.
Be sure to keep copies of both the original and any corrected 1099-K forms for your tax records.
Can Ticketmaster issue me a 1099-K instead of 1099-MISC?
Ticketmaster does not have a choice in the type of 1099 form they issue – it is determined by IRS rules based on your transactions. Only third party payment networks like Ticketmaster issue 1099-Ks for gross sales over $20,000.
For other types of contractor payments, companies must use 1099-MISC or 1099-NEC once you exceed $600 in non-employee compensation. But for sales through their platform, Ticketmaster is required to use 1099-K.
There is no way for Ticketmaster to opt you out of a 1099-K and issue a 1099-MISC instead if you meet the reporting criteria.
Do I need to issue 1099-Ks for sales on Ticketmaster?
If you are reselling tickets you purchased through Ticketmaster, you generally do not have to issue any 1099 forms to buyers. That responsibility falls on Ticketmaster as the third party payment network facilitating the transactions.
You would only need to issue 1099s if you are making direct payments outside the Ticketmaster platform, like via check or PayPal, tied to ticket sales. Even then, 1099s are only required if you paid over $600 to any unincorporated vendor.
Should I ask Ticketmaster for tax advice?
Ticketmaster should not be relied upon for definitive tax advice related to 1099-Ks or proper income reporting. Their role is limited to issuing 1099-Ks per IRS requirements.
For guidance on how to handle 1099-K amounts, deductions, expenses, losses, and other tax implications, you should consult with a qualified tax professional like a CPA, EA, or experienced tax attorney.
You can also refer to instructions for Schedule C and Form 1099-K directly on IRS.gov for additional reporting guidance.
Conclusion
Receiving a 1099-K from Ticketmaster can seem alarming but does not necessarily mean you owe excessive taxes. You are required to report the gross income amount, but can offset it with eligible deductions for fees, refunds, and costs of sales.
Document any discrepancies between your net income and 1099-K amount. Seek a corrected 1099-K if needed or reasonable estimates without one. With proper accounting, you can ensure your tax liability aligns with your true net business income.