Selling tickets on Ticketmaster is a great way for individuals or businesses to resell tickets they can no longer use. However, like any income earned, taxes must be paid on the proceeds from ticket sales. So if you plan to sell tickets through Ticketmaster, you’ll need to provide some tax information during the signup process.
In this article, we’ll take a look at the tax requirements for selling tickets on Ticketmaster, including:
- Do you need to provide tax info to sell tickets on Ticketmaster?
- What tax information does Ticketmaster require?
- When do you need to submit tax forms to Ticketmaster?
- How does Ticketmaster report your earnings to the IRS?
- Are there sales thresholds that trigger tax reporting?
- How can you keep track of your tax obligations?
Understanding the tax implications upfront will ensure you stay compliant as you use Ticketmaster to resell tickets.
Do you need to provide tax info to sell tickets on Ticketmaster?
Yes, all Ticketmaster sellers are required to submit tax information in order to list tickets for sale. This applies whether you are an individual or a business.
Ticketmaster needs your tax information because they are required by law to report income earned on their marketplace to the IRS. As an online marketplace facilitating ticket resales between third parties, Ticketmaster must issue 1099-K tax forms to sellers that meet certain sales thresholds.
So if you want to sell tickets through Ticketmaster, you’ll have to provide either your Social Security number (SSN) or Employer Identification Number (EIN) when you sign up as a seller. This allows Ticketmaster to accurately report your sales and send you the proper tax paperwork.
Key Takeaway
All Ticketmaster ticket sellers must submit their tax ID number (SSN or EIN) in order to list tickets for resale on the Ticketmaster marketplace. This is required for Ticketmaster’s own tax reporting obligations.
What tax information does Ticketmaster require?
When you register as a seller on Ticketmaster, here are the key pieces of tax information you’ll need to provide:
- Social Security Number (SSN) or Employer Identification Number (EIN) – This unique identifier is required for any type of seller, whether you are an individual, sole proprietor, partnership, corporation, nonprofit, etc. It allows Ticketmaster to report your sales activity to the IRS.
- Legal name – Provide your full legal name as it appears on your Social Security card or official government documentation.
- Legal business name – If registering as a business, provide the registered legal name of your business.
- Business type – Select whether you are registering as an individual/sole proprietor, partnership, corporation, nonprofit, etc.
- Address – Supply the valid physical address for yourself as an individual seller or for your business. Cannot be a P.O. Box.
This information will be used to generate your required 1099-K form if you exceed $600 in gross sales within a calendar year.
Key Takeaway
Ticketmaster requires your SSN/EIN, legal name, business details, and address in order to meet tax reporting requirements for ticket sellers on their marketplace.
When do you need to submit tax forms to Ticketmaster?
You’ll be required to provide tax information upfront when registering as a new seller on Ticketmaster. Here are some key timings for submitting tax ID numbers and forms:
- Seller registration – Your SSN/EIN and other tax details must be submitted when you first create your Ticketmaster seller account. This information is mandatory.
- W-9 form – U.S. sellers will need to fill out a W-9 form within 30 days of opening your seller account. This further verifies your tax ID number.
- W-8 forms – Non-U.S. sellers must submit the applicable W-8 form for their country within 30 days.
- Updates – You’ll need to promptly update your information if anything changes, like your legal business name, address, etc.
Be sure to get all required tax forms submitted within the first month of becoming a Ticketmaster seller. This prevents any delays or holds on your account.
Key Takeaway
Submit your tax ID number when registering as a Ticketmaster seller, and complete follow-up W-9/W-8 forms within 30 days. Promptly update any changes to your tax information.
How does Ticketmaster report your earnings to the IRS?
Ticketmaster takes care of reporting your ticket sales activity and income to the IRS, sparing sellers from additional tax paperwork. Here is how they handle the reporting:
- 1099-K forms – If you exceed $600 in gross sales within a calendar year, Ticketmaster will issue you a 1099-K reporting your gross sales/receipts, processing fees, and any other applicable tax info.
- Thresholds – Gross sales amounts determine which tax form applies. Under $600 gets a 1099-NEC, over $600 gets a 1099-K. Under $5,000 in sales also only gets a 1099-K as a courtesy.
- Electronic filing – Ticketmaster submits all 1099 forms electronically to the IRS. Sellers receive a paper copy for their records by mail.
- Due dates – Tax forms are issued to sellers by January 31 for the previous tax year’s activity.
So you don’t have to worry about personally reporting your Ticketmaster earnings to the IRS. That tax paperwork is handled for you.
Key Takeaway
Ticketmaster files required 1099-K or 1099-NEC forms electronically with the IRS on behalf of sellers. This relieves individual sellers from reporting responsibilities.
Are there sales thresholds that trigger tax reporting?
Yes, Ticketmaster is legally required to start reporting your ticket sales income once you cross certain thresholds. Here are the key sales levels that trigger tax reporting and 1099 forms:
Annual Gross Sales | Tax Form |
---|---|
Under $600 | 1099-NEC |
Over $600 | 1099-K |
$5,000 and under | 1099-K courtesy copy |
As you can see, you’ll trigger mandatory 1099-K reporting once your gross sales exceed $600 within a single calendar year. The $5,000 threshold generates a non-required 1099-K as a courtesy.
Key Takeaway
Gross sales above $600 trigger mandatory 1099-K tax reporting from Ticketmaster. Sales above $5,000 also get a courtesy 1099-K even though not required until $20,000.
How can you keep track of your tax obligations?
Since you are responsible for paying taxes on income earned from selling tickets, here are some tips to keep track of your tax obligations:
- Save transaction records – Download reports from your Ticketmaster seller account to have details of all your sales, fees, shipping, etc.
- Dedicate a bank account – Have a separate business bank account to easily track deposits and expenses.
- Accounting software – Use accounting software like QuickBooks to log income and expenses. This feeds right into tax prep.
- Mileage tracking – If you drive to any post office, shipping center, or events to source tickets, track mileage for write-offs.
- Calendar reminders – Set reminders for estimated quarterly tax payments, annual filing deadlines, etc.
Thorough records and organization will make tax time much smoother. Consider working with a tax professional if you have questions.
Key Takeaway
Use detailed transaction records, dedicated bank accounts, accounting software, mileage logs, and calendar reminders to stay on top of your ticket sale income and expenses for tax purposes.
Conclusion
In summary, selling tickets through Ticketmaster does require providing tax information in order to list tickets for resale. All sellers need to submit their SSN/EIN and other identification details during the signup process.
Ticketmaster uses this tax information to meet their reporting requirements to the IRS. Any seller that exceeds $600 in gross annual sales will receive a 1099-K reporting their income. Ticketmaster files these tax forms electronically.
Keeping detailed records is essential for individuals to calculate their tax obligations. But Ticketmaster takes care of the heavy lifting by reporting sales activity directly to the IRS on behalf of their ticket sellers.