Change in reporting rules for Form 1099-K

Did you earn more than $600 in income in 2022 from selling goods or providing services? If you received that income via third-party payment applications such as Venmo or Paypal, you may receive Form 1099-K, “Payment Card and Third-Party Network Transactions.” According to the IRS, there’s no change to the taxability of the income. There is a change to the reporting rules for Form 1099-K. Beginning this year, the payment threshold has been lowered to $600. The IRS emphasizes that money received through third-party payment applications from friends and relatives as personal gifts or reimbursements for personal expenses isn’t taxable. Contact our team for more information.