This year has been buzzing with concerts and sports events. Maybe you scored a coveted ticket to Beyonce’s Renaissance tour, or, should you be so lucky, Taylor Swift’s Eras tour. Perhaps you got a ticket to a Yankees game or the Paris Olympics. But after grabbing your tickets, you came across someone even more gung-ho—and willing to pay a premium for your tickets.

If you made a profit from reselling tickets, brace yourself for taxes! Just like ticket prices, the taxes tied to reselling can grow rapidly. So whether you're a seasoned scalper or a novice reseller, understanding the tax implications of your ticket-flipping transactions is crucial.

Imagine reselling a Taylor Swift or Beyonce ticket on an online platform like Ticketmaster. You might have anticipated receiving a Form 1099-K if your total transactions for the year exceeded $600. However, the IRS has announced a delay in lowering reporting thresholds for the upcoming filing season. For tax year 2023 (filed in 2024), you may not receive a 1099-K unless your sales exceed $20,000 from over 200 transactions.

Looking ahead to tax year 2024 (filed in 2025), the IRS plans to implement a $5,000 threshold as part of the phased transition to the lower $600 threshold mandated by the American Rescue Plan of 2021.

If you're not a frequent reseller and don't meet the volume criteria, you might not receive a Form 1099-K. But regardless of this, you should report all your income from ticket reselling on your taxes.

If you’re a ticket reseller with net earnings of $400 or more, you may owe self-employment tax. But if it's a one-time sale, that’s unlikely—although it could trigger a capital gain. 

When tax filing time arrives, get the details of your sales together. A 1099-K typically includes your gross total, excluding any fees you paid. Having receipts for these associated fees can be helpful, as it allows you to (potentially) deduct them from your total income, reducing your taxes owed.

Whether you've already resold tickets or are contemplating it, be sure you have a tax strategy to cover any high taxes owed. If you need help navigating ticket resale taxes, connect with an expert CPA on TaxGlobal.