The IRS announced last week that it will be delaying the 1099-K reporting requirement for third-party payment platforms until next year. If you still receive a Form 1099-K, please include it with your tax documents because the IRS continues to determine final guidance on handling existing 1099-Ks. (Update as of 12/23/22)
Do you use Venmo, PayPal, or CashApp to receive payments?
Have you sold tickets through Ticketmaster or goods through Facebook Marketplace?
Did you receive more than $600 per payment provider during 2022? If so, you will be receiving Form 1099-K and must report this on your tax return.
Now is the time to consider why you received these payments. We will need to know the cost of items sold, the amount of any gifts received, etc.
Don’t worry: N&Co is here to help! Please plan to note your expenses in your organizer, and let us know if you’d like a separate worksheet to hep you gather your information if you are selling goods or services.
If you need guidance on record keeping for these income and expense items, please refer to this resource or this resource, or always feel free to call us at 614-891-5423.