Planning to resell your season tickets? The IRS may be watching

Are you a season ticket holder planning to sell your pass midway through the season? Be careful—failing to report any income gains from the sale properly could result in audits and fines from the IRS.

The One Big Beautiful Bill Act (OBBBA) reversed a Biden-era rule that would have required individuals to report income over $600 from digital platforms. Under the new law, the reporting threshold for Form 1099-K has been raised back to $20,000 and 200 transactions, restoring the pre-2024 standard. Additionally, the thresholds for Forms 1099-MISC and 1099-NEC have been increased to $2,000, effective in 2026, with adjustments for inflation beginning in 2027.

Whereas the previous rules would have required a 1099-K be generated for any seller that earned more than $600, regardless of the number of transactions, that is no longer the case. Only resellers that meet both the dollar value ($20,000) and transaction level (200) will see a tax form generated by the platform being used, like Ticketmaster.

Whereas the previous rules required a 1099-K to be generated for any seller earning more than $600—regardless of the number of transactions—that is no longer the case. Now, only resellers who meet both the dollar threshold ($20,000) and the transaction count (200) will receive a tax form from the platform they use, such as Ticketmaster.

However, these rules will go into effect in 2026, meaning that when filers report their incomes to the IRS for 2025, the old rules might apply. As of September 2, the IRS website states that “third party settlement organizations (TPSOs) – which means (payment apps and online marketplaces – are required to report payments on Form 1099-K when the total amount of payments you receive for goods or services through the platform exceeds: $2,500 in 2025."

The new rules don’t mean you should be lax about record keeping.

Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals, warned that some resellers might still receive a 1099-K. Speaking with USA Today, he explained that to simplify compliance, some platforms may issue 1099-Ks to all users to avoid liability on their end.

For this reason, O’Saben emphasizes the importance of keeping your own records. The 1099-K only reports gross income to the IRS—not profit. To avoid paying taxes on both what you earned and what you originally spent, you’ll need documentation showing the ticket’s purchase price so you can deduct it.

O’Saben also reminds recipients that the IRS receives a copy of every 1099 issued. Failing to report the income listed could result in your return being flagged, which might delay your refund—or worse, trigger an audit. The IRS makes this clear on the agency’s website, saying that even those who do not meet the transaction or revenue generation limits, “must report all income on your tax return.”

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