IRS Postpones 1099-K Reporting Rules to 2024

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  • Опубліковано 25 сер 2024

КОМЕНТАРІ • 39

  • @kevinbender6153
    @kevinbender6153 9 місяців тому +8

    Can't spell "Theirs" without IRS

  • @norikkagodun568
    @norikkagodun568 9 місяців тому +7

    Does it have to be both, made 20K AND more than 200 transactions?
    What if it is less than 20K but 200 transactions or vice versa?

    • @aaronkosharskyswhiteknight5224
      @aaronkosharskyswhiteknight5224 9 місяців тому +5

      yes has to be both, if it follows the previous years rules, thats what it has been. I repeat, you must passs BOTH!

    • @ACEKING26
      @ACEKING26 9 місяців тому +1

      i think is both

  • @Brad68303
    @Brad68303 6 місяців тому +1

    You just said they said they pushed it off another year. But... as of today 2/2/24 I just received a 1099 for tax year 2023 for $800.00 in sales. So now what?

    • @rob_cpa
      @rob_cpa  6 місяців тому

      They pushed the 1099-k lower limits. The old rule still stands at $20,000 and 200 transactions. As for the 1099 NEC or Misc, they did not change this…it’s still $600. You will need to report you 1099 on your tax return.

  • @alandunaway3000
    @alandunaway3000 6 місяців тому +1

    Wait, so it's not $600?

    • @rob_cpa
      @rob_cpa  6 місяців тому

      The 1099-K, which is different than the 1099-MISC and 1099-NEC, limit for 2023 is $20,000.
      Correct, they decided to delay the $600 minimum for future years.

  • @PattyWebb-bg1ho
    @PattyWebb-bg1ho 5 місяців тому +1

    What about 2024

    • @rob_cpa
      @rob_cpa  5 місяців тому

      There is a bill in Congress right now that would change the rule to $1,000...we'll wait to see if it passes.

  • @Ninnjette-
    @Ninnjette- 6 місяців тому +1

    I got a 1099K from Mercari. I made $2,000 for the entire year. Should I report that?

    • @rob_cpa
      @rob_cpa  6 місяців тому +1

      Yes, you need to report it on your tax return. The IRS has received the same copy of that 1099K.

    • @Ninnjette-
      @Ninnjette- 6 місяців тому

      @@rob_cpa Thank you!!

  • @jennellrogers9007
    @jennellrogers9007 8 місяців тому +2

    So is it that you have to have BOTH 20,000 AND 200 transactions Or is it if you have 20,000 OR 200 transactions

    • @rob_cpa
      @rob_cpa  8 місяців тому

      Good question - yes, its $20,000 from over 200 transactions.
      Thank you watching the video.

  • @BigLikeACow
    @BigLikeACow 7 місяців тому +1

    So if you are below those thresholds do you report your income? Im confused 🤔

    • @rob_cpa
      @rob_cpa  7 місяців тому

      Good question.
      You still report income, it’s just you will not receive one of these tax forms and the IRS will not receive a copy as well.

  • @TheBeautybound
    @TheBeautybound 9 місяців тому +1

    Ebay hasn't made a statement or change on their 1099 page- will they still be sending them regardless?

    • @rob_cpa
      @rob_cpa  9 місяців тому +1

      Here is Ebay - its $20,000 and 200 transactions before they send 1099Ks. www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794

  • @Kennystesting
    @Kennystesting 7 місяців тому +1

    I am a single member LLC. I hired an independent contractor to do $1100 worth of work for me last year. I paid her through her PayPal merchant account. So if she does not get a 1099K from PayPal, should I send her a 1099 for the amount I paid her?

    • @rob_cpa
      @rob_cpa  7 місяців тому

      Good question.
      Since you are paying them through a merchant processor, its up to the processor to mange the 1099 filings.
      To be safe, you can always sent a 1099 to the contractor, but its not required since PayPal will manage it.
      If you do send one, then use Track1099.com - its easy and cheap.

  • @sokio317
    @sokio317 9 місяців тому +1

    How about Uber, Amazon Flex, DoorDash etc?

    • @rob_cpa
      @rob_cpa  9 місяців тому

      Based on Uber's website, it states that drivers will recieve a 1099-K if they are paid over $20,000 and 200 transactions.
      This is based on the new IRS rules - please see my new video: ua-cam.com/video/insVoe_aTmM/v-deo.html - in short, the IRS went back to the old rules for 2023.

    • @sokio317
      @sokio317 9 місяців тому

      Everyone else like DoorDash, Amazon flex for example that receives a 1099-NEC does not change?

  • @ACEKING26
    @ACEKING26 9 місяців тому +1

    so that means the year of 2023 is void if i did not reach the limit of 5000 dollars of sales?

    • @rob_cpa
      @rob_cpa  9 місяців тому +1

      $5,000 is the minimum for 2024. In 2023, the limit is $20,000

    • @ACEKING26
      @ACEKING26 9 місяців тому

      @@rob_cpa may i ask does this also apply to doordash?

  • @ivanjohnson8123
    @ivanjohnson8123 8 місяців тому

    What about StockX and goat reselling apps

  • @waunbudd2665
    @waunbudd2665 9 місяців тому

    Would multiple accounts help?

  • @thegrapevine10
    @thegrapevine10 9 місяців тому

    So a family sending someone 800 dollars and 1200 dollars through zelle to pay for mortgage is going to get a letter from the IRS? And is it going to require cash to be withdrawn and deposited to a persons account in order to avoid the IRS bothering you?

    • @theinquisitor18
      @theinquisitor18 9 місяців тому

      It only applies to business income(i.e., Self-Employed income). As long as you DON'T mark it as a business transaction(I.e., Goods and Services on PayPal or Venmo), you're fine. I don't think Zelle even offers business payments. Now, if the transactions were truly business income, you would need to report them, even if no 1099-K/1099-NEC was issued, but at that point, it's a moral decision for you to make and if you are willing to take the risks.
      The whole point of this reporting requirement is to catch Sole Perpetrators who are not reporting their business income and not paying income and SE Taxes.
      With all that said, and the reason the IRS is postponing the 1099-K requirements is because of people making mistakes, mislabeling transactions that were truly personal payments as business income, or furnishing errors by payment processors.
      I'm all for this reporting requirements, but I see the issues that will need to be ironed out first before full implementation.
      Edit: Zelle does offer some small business services, but they are not subject to the reporting requirements. They do not report transactions on 1099-K, according to their FAQ, even if it was a business transaction. They are not subject to these reporting requirements.

  • @gameofyou1
    @gameofyou1 8 місяців тому +1

    I’m sure this delay has nothing to do with it being an election year…

    • @rob_cpa
      @rob_cpa  8 місяців тому

      Good point...usually does...but I think they realized how much paperwork and confusion it was going to be before year-end.

  • @saohengyoung5785
    @saohengyoung5785 8 місяців тому +1

    Subscriber #1690!!!

    • @rob_cpa
      @rob_cpa  8 місяців тому

      Thank you for subscribing

  • @TuffEnuffIII
    @TuffEnuffIII 9 місяців тому +1

    Do not comply... period

  • @pingadol1555
    @pingadol1555 9 місяців тому +1

    Does any of this apply lets say to PayPal friends and family transactions?

    • @rob_cpa
      @rob_cpa  9 місяців тому

      Yes it does.
      Keep in mind, if you are sending money to family and friends as reimburesements, these tend not to be taxable.

    • @thepfaltzy4010
      @thepfaltzy4010 7 місяців тому

      Would this be different depending on the state you live in? I live in Iowa and have sold items on eBay. I’ve sold more than 200 items but less than the $20k required