jmacvols1
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Made money online this year? You could owe more in taxes
"Starting in 2023, more people who made money on eBay, Etsy, Poshmark, Uber or other digital platforms will have their income reported to the Internal Revenue Service. Anyone who made more than $600 via a gig platform or who was paid that much on Venmo will receive a 1099-K form, meaning that those funds will be reported to the IRS, the agency said.
Americans already receive 1099 forms if they make money as an independent contractor, if they earn interest on a bank savings account or if they make a significant sum by selling things online. What's new is the $600 threshold.
Before this year, people only received a 1099-K form if they earned at least $20,000 from online platforms and made more than 200 transactions on the platform. Now, a single transaction exceeding $600 can trigger a 1099-K reporting requirement, according too IRS. "
More: Just ONE offense reported by TicketMaster, PayPal, Cash App or Venmo, you get audited.
More:
IRS warns Americans about $600 threshold to report Venmo, Cash App payments
"Beginning this year, third-party payment processors will be required to report a user's business transactions to the IRS if they exceed $600 for the year. The payment apps were previously required to send users Form 1099-K if their gross income exceeded $20,000 or they had 200 separate transactions within a calendar year.
Democrats made the change in March 2021, when they passed the American Rescue Plan without any Republican votes. Now, a single transaction over $600 will trigger the form. The change is intended to crack down on Americans evading taxes by not reporting the full extent of their gross income. However, critics say that it amounts to government overreach at its worst and that it could ultimately hurt small businesses."
"Starting in 2023, more people who made money on eBay, Etsy, Poshmark, Uber or other digital platforms will have their income reported to the Internal Revenue Service. Anyone who made more than $600 via a gig platform or who was paid that much on Venmo will receive a 1099-K form, meaning that those funds will be reported to the IRS, the agency said.
Americans already receive 1099 forms if they make money as an independent contractor, if they earn interest on a bank savings account or if they make a significant sum by selling things online. What's new is the $600 threshold.
Before this year, people only received a 1099-K form if they earned at least $20,000 from online platforms and made more than 200 transactions on the platform. Now, a single transaction exceeding $600 can trigger a 1099-K reporting requirement, according too IRS. "
More: Just ONE offense reported by TicketMaster, PayPal, Cash App or Venmo, you get audited.
More:
IRS warns Americans about $600 threshold to report Venmo, Cash App payments
"Beginning this year, third-party payment processors will be required to report a user's business transactions to the IRS if they exceed $600 for the year. The payment apps were previously required to send users Form 1099-K if their gross income exceeded $20,000 or they had 200 separate transactions within a calendar year.
Democrats made the change in March 2021, when they passed the American Rescue Plan without any Republican votes. Now, a single transaction over $600 will trigger the form. The change is intended to crack down on Americans evading taxes by not reporting the full extent of their gross income. However, critics say that it amounts to government overreach at its worst and that it could ultimately hurt small businesses."
