USA: Read If You Accept Electronic Payments (e.g PayPal) - IRS Law Change
The COVID relief bill that passed in the US reduced the reporting threshold for the IRS 1099K from $20,000 and 200 transactions per year to $600 per year if you use an electronic payment system like PayPal. Even if you are just keeping and breeding as a hobby SAVE YOUR RECEIPTS so you can offset that 1099K with your expenses.
https://www.twrblog.com/2021/03/amer...mis-threshold/ https://www.ecommercebytes.com/C/abb...615153514.html |
Am I reading this correctly that it doesn't take effect until next year? I save all receipts of transactions regardless, just wanting to make sure I am following it correctly.
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Yes this year the thresholds are still $20,000 and 200 transactions.
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Reminder - the law changes in one week!
https://www.taxjar.com/blog/2021-11-...rting-for-2022 |
Learn your Schedule C and Schedule SE tax forms ladies and gents.
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IRS is going bye bye...save yourself the aggravation.
its all gonna change. research is the only way. |
also dump PayPal..junk
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The implementation of the reporting rule has been delayed for a year. So, the threshold of $20,000 and 200 transactions remains in effect for tax year 2022. The $600 and one transaction threshold applies to tax year 2023.
https://www.irs.gov/newsroom/irs-ann...s-forms-1099-k |
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