IRS Delays Reporting for $600+ Payments
The Internal Revenue Service will once again delay the new $600 Form 1099-K reporting threshold requirement for third party payment processors for tax year 2023 and is planning a higher threshold for 2024 to phase in the new law.
The IRS said it made the decision “following feedback from taxpayers, tax professionals, and payment processors and to reduce taxpayer confusion”.
The agency is making 2023 another transition year to implement the new requirements under the American Rescue Plan that changed the Form 1099-K reporting threshold for payments taxpayers get selling goods or providing a service over $600.
The previous reporting thresholds will remain in place for 2023. This means that for 2023 and prior years, payment apps such as Venmo, PayPal, Cash App and other are only required to send out Forms 1099-K to taxpayers who receive over $20,000 and have over 200 transactions.
For tax year 2024, the IRS plans for a threshold of $5,000 to phase in reporting requirements.
It’s important to remember that the higher threshold does not affect the actual income on your tax return. All income, no matter the amount, is taxable unless it’s excluded by law. So it shouldn’t matter whether a Form 1099-K is sent or not.
Lower Spend - Chase Ink Business Preferred® 100K!
Chase Ink Business Preferred® is a powerful card that earns 3X Ultimate Rewards points in a broad range of business categories on the first $150K in spend per year. Right now earn 100K Chase Ultimate Rewards points after Learn more about this card and its features!
Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.
So now we’re talking about tax laws on a travel site? To go on top of all the non travel related shopping posts too? WTF is the point of Boarding Area when bloggers don’t actually blog about TRAVEL ?
Miles to Memories has been on BoardingArea for 9 years and we have always covered stuff like this as do other sites which have been there a long time like Frequent Miler. We are a travel site yes but also cover deals, credit cards and some financial stuff. That’s all in the mandate of BoardingArea.
I say this not to fire back. I get that you don’t like this content and that is fine. I hope you continue to give the other sites you enjoy a chance though. Something for everyone.
Have a good one!