![]() No matter what triggers your form, H&R Block can help you report income from your 1099-K. The other will go to the IRS as a record of your transactions.Īdditionally, it’s good to keep in mind not all 1099-K transactions are alike, and the tax treatment can vary. One is for you, so you can prepare your taxes. The platform or app you used will send two copies of your 1099-K information. What is a 1099-K used for? What do I do with it? The bottom line: If you receive payments for goods and services in 2023 from an app or online platform, it’s a good idea to keep your receipts. money from friends for rent or a rideshare). But the delay also allows the IRS time to provide additional instructions, so people are less likely to receive a form for personal transactions (ex. The delay is only for one year, so the $600 rule is expected to apply again for tax year 2023. Looking ahead to 2023 returns (filed in 2024): Removing personal transactions In either case, we can help you determine how to handle your 1099-K. They may have either prepared them before the rule was delayed, or they may send forms regardless of the amount you received. We should note that some businesses may still send a 1099-K. You should expect a 1099-K form if you had $20,000 or more in payments or 200 or more transactions from any one platform related to goods or services. 23, the IRS announced that the new $600 rule would be delayed and that the previous rules will apply for 2022 returns. This law is meant to apply to payments for goods and services but could have included personal payments from apps such as Venmo, Paypal, Etsy, and Ticketmaster, to name a few. $600 rule passed in 2021 – In early 2021, a law was passed dropping the 1099-K requirements for 2022 from $20,000 (and 200 transactions) to $600 from any one platform.To keep it simple, we’ve noted the big changes. With all the changes, you may be wondering if you’re totally caught-up on what’s new. What changed with 1099-K rules? And what’s been delayed?Ī new tax law, and then a delay of that law? Yeah, it’s a lot to digest. Officially, this document is called “Form 1099-K: Payment Card and Third Party Network Transactions,” which may shed some light on who sends these forms and why. The 1099-K form reports payments and transactions from online platforms, apps or payment card processors. And, if you do receive Form 1099-K, you can count on H&R Block to help you navigate your taxes.Įxplore the ways you can file taxes with H&R Block. Read on to dig into the details, starting with what this form is all about. With the delay of the rule, not as many people will be affected as expected this year. Some people will still receive Form 1099-K for tax year 2022 early in 2023 based on the previous rules.In general, the rules for sending Form 1099-K for tax year 2022 will apply as they did for tax year 2021 according to the IRS announcement.
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