That means, if you live in one of those states and received more than $600 in goods and services earnings through a payment platform, you probably received a 1099-K detailing total payments. In Maryland, Massachusetts, Vermont and Virginia, the $20,000 reporting threshold decreased to $600 for tax year 2022. Congress implemented the American Rescue Plan Act of 2021.
However, the tax rules for third-party payment processors changed when the U.S. Previously, the IRS required that these platforms send 1099-Ks only if total goods and services payments exceeded $20,000 or 200 transactions in a given year. If you accept goods and services payments through a third-party payment platform – such as Venmo, PayPal or Cash App – you’ll likely receive 1099-K tax forms to report those payments when you file your taxes. Side hustlers and gig economy professionals beware: you could end up with a large pile of tax forms ahead of the filing deadline.
0 kommentar(er)
