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Dealing with 1099-Ks for 2022 Tax Returns

November 30, 2022

TaxSpeaker.com - By now you have heard that there is a new reporting threshold for 3rd party payors and payment cards such as EBay, Facebook Marketplace and cash transfer applications (other than Zelle) of $600. Congress decided that all of these amounts will be reported on the 1099-K. Did you sell $800 worth of old furniture on Ebay-guess what, you get a 1099-K because it is over $600. Did you do cash transfers over the course of the year to one or more friends over $600 through an app? Guess what, you will also get a 1099-K.

The term payment card includes credit cards, debit cards, and stored-value cards (including gift cards), as well as payment through any distinctive marks of a payment card (such as a credit card number).

The IRS has already stated that the data will be used for new audit and collection approaches and computer matching for unreported income. They have also estimated that the number of 1099-K’s to be processed this coming year will double from last year!

Davis & Hodgdon CPAs works with individuals to capitalize on all applicable deductions. Our accountants have the experience required to make sure that nothing is missed! For more information or to set up an appointment please click here or email info@dh-cpa.com.

This is shared as a service to our clients, business associates and friends. Recipients should not act on the information presented without seeking prior professional advice. Additional guidance may be obtained by contacting Davis & Hodgdon CPAs at 802-878-1963 (Williston) or 802-775-7132 (Rutland).

Resource:
Bob Jennings, TaxSpeaker.com