1099-K Threshold Reversal and Tax Policy Updates for Gig Workers

The IRS has reversed the planned $600 1099-K threshold, keeping it at $20,000/200 transactions for 2026. This directly affects gig workers and casual sellers on platforms like eBay, Etsy, Uber. Tax obligations remain unchanged—only paperwork changes. The article stresses that all side income is still taxable. This reversal provides clarity after years of confusion. Other tax updates: QBI deduction (20% off net profit) now permanent, EITC max $8,231 for families with 3+ kids, and eight states cutting income taxes in 2026. New: IRS and Treasury proposed Saver's Match program replacing Saver's Credit, offering up to $1,000 direct government matching for retirement contributions, income thresholds $35.5k/$71k, TrumpIRA.gov. Developing story as implementation details may still evolve.