re: Can somebody explain what is a 1099 tax form?

I have worked as a volunteer tax preparer and received training on this for the 2022 tax year. The reporting requirements for income has not changed. If you sell something at a gain according to the IRS you must report the gain as income. What has changed is that third party payment processors such as Ebay, Etsy, Venmo, PayPal, etc are now required to report proceeds in excess of $600. This is reduced from $20,000 in previous years. The reports by third party was supposed to begin for the 2022 tax year but has been delayed until 2023.

If you sell your sports cards for $2,000 and cost was $500 you have a $1,500 gain to report. If you sell a used sofa for $200 and it cost you $2,000 you have no gain to report.

Keep track of the cost to purchase the item, any costs to sell such as processing fees, marketing costs, etc can be deducted from the gain. Capital gains are taxed at 0% if your AGI is below $41,675 single and $83,350 Married filing jointly. Rate is 15% if above those amounts and less than $459M Sin /$517M MFJ.

Attached is a FAQ from the IRS that was released in December 2022. I hope this is some help.

IRS FAQ 1099 Reporting