Saving Gig Economy Taxpayers Act

This bill would bring back the old rule for when payment platforms must send tax forms for people who get paid through them. It restores the higher “small amount” exception so these platforms only have to report your payments if, in one year, you have more than $20,000 in payments and over 200 separate transactions. This aims to reduce surprise tax forms for casual sellers and many gig workers.

It also lines up the backup withholding rules with that same threshold. In short, these payments would only be treated as “reportable” for withholding if you cross both the $20,000 and 200-transactions marks in a year, except when your payments were already reportable the year before. This withholding change would start with calendar years after December 31, 2024. The bill’s purpose is reflected in its title, which focuses on taxpayers in the gig economy.

• Who is affected: People paid through third-party payment platforms and networks; many gig workers and casual online sellers .
• What changes: Reporting to the IRS only if payments are over $20,000 and more than 200 transactions in a year; backup withholding applies only if those thresholds are met (with an exception if last year was reportable).
• When: Backup withholding change applies to years starting after December 31, 2024; the reporting rule is restored as described in the bill text.