Updated Info! IRS Form 1099-K

Do you accept payments through Venmo, PayPal, Square and other peer-to-peer platforms throughout the year? If so, then you will receive a Form 1099-K from third-party payment networks.

Form 1099-K is a report of payments you received during the year from:

• Payment apps or online marketplaces (third-party payment networks, such as Venmo, PayPal, Amazon Payments, etc.)

Third-party payment networks are required to file Form 1099-K with the IRS and provide a copy to you when the gross payment amount is more than $600 in a calendar year. Form 1099-K should not be used to report gifts or reimbursement of personal expenses you received from friends and family, however, it could (see below). It is best to start looking at your transactions from 2023 now.

Use Form 1099-K with other tax records to help figure and report your taxable income when you file your taxes. Form 1099-K is a reportable document and taxpayers will need precise records if they disagree with the reportable amount.

If You Received Payments Over $600 With a Payment App or Online Marketplace

Taken directly from the IRS website, 1099-K forms might include payments for a personal item you sold or for goods you sell, services you provide or property you rent through any:

• Peer-to-peer payment platform or digital wallet

• Online marketplace (sale or resale of clothing, furniture and other items)

• Craft or maker marketplace

• Auction site

• Car sharing or ride-hailing platform

• Real estate marketplace

• Ticket exchange or resale site

• Crowdfunding platform

• Freelance marketplace

If you receive gifts or reimbursement of personal expenses from friends and family and these amounts are reported on Form 1099-K, then you will need the back-up to specifically flag those transactions as personal.

To sum up, keep an eye out for the Form 1099-K and/or check your account (Venmo, PayPal, etc.) next February to see if one was issued to you for 2023.

For more information on the NEW Form 1099-K, visit the IRS webpage for comprehensive information.

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Upcoming Dates

Individual Tax Return Filing Deadline - October 15th
Corporation & Partnerships Tax Return Filing Deadline - October 15th