$600 Rule for 2022. Form 1099-K from PayPal, Venmo, Cash App
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- เผยแพร่เมื่อ 11 ก.ย. 2024
- The new $600 reporting threshold is out for Form 1099-K. This will, unfortunately, create more reporting hassles for taxpayers who use services such as eBay, Paypal, Venmo, Cash App, Stripe, etc.
Form 1099-K will now be issued for any person who received payments grossing $600 or more via one of these payment platforms. The payment platform does not care about the character of the income, so even payments received that are not taxable (such as gifts, loans, reimbursements, etc.) will still be reported on Form 1099-K.
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#IRS #1099k #Form8949
Dude, Awesome job. I have looked at tons of videos on this subject on YT and they are all focused on BUSINESS vs the personal side. Ie 1099k because a family member reimbursed me $800 and paypal sent me a 1099k email saying I was getting one. Thanks for talking about the two notices.
Glad it was helpful!
Question. I assume the tax is only on the profit. So lets say I bought an item for $720 and sold it for $800. Am I only taxed a certain percentage on the $80 profit itself?
That's correct. When you sell a capital asset, you report the gross proceeds from the sale and your adjusted cost basis. You pay taxes on the capital gain only.
So essentially, all I’m required to do is report all the money I’ve made through cashapp exceeding the $600 threshold annually on my 1099-K?
If I want to clear the clutter around the house and I have to go to the trouble for this? It's not worth it..
Yup. Better off just selling stuff at a yard sale for cash rather than going online and potentially getting a 1099-K
@@JasonDKnott , I’m afraid they’ll go after yard sales in future as well 😟 Just kidding. But thank you for your clarification!
Same here! I’ve been doing decluttering successfully but now my enthusiasm is gone! At least I’m not buying much either.
Hi Jason, I’m curious if I would get a 1099k if I make over $600 combined on multiple third party sites, but under $600 on each one
No, you would have to hit $600 per platform in order to get a 1099-K
@@JasonDKnott , I had the same worries. Thank you for letting us know!
Hey Jason,
What happens if you made a total of $7,955.59 from $8990 from stripe. I never received a 1099. How do I report it?
It all depends upon what type of income or receipts you generate through stripe. Are these sales in connection with your trade or business, the sale of personal use assets, a gift from someone, etc. The character of the income and activity drives how it is reported on your tax return.
@@JasonDKnott It was a monthly membership service.
If I sold something on eBay for $590 and then sold another thing for $20 .. would I receive a 1099K? Is it total revenue or each thing separately?
It’s total for sure ☹️
What about being reimbursed for testing a product?
These situations can get very complicated. If you purchase a product to test the product, and you are reimbursed for the cost and get to keep the product, you have been compensated to test and review the product - this is generally income under U.S. tax rules. If you bought a product, returned it, and were reimbursed for the cost, then there is generally no issue. You should consult with a tax advisor to discuss your individual facts and circumstances.
Hello Jason, what about Zelle transfers?
Zelle transfers won't be subject to Form 1099-K reporting. However, if you receive payments via Zelle that are income, then you still have to report the income. You just won't get a Form 1099-K from Zelle at year end.
Hi, I am a single owner LLC of a foreign DE entity registered in DE but I received a 1099K from Shopify. Can you please tell me what to do with it and if I am going to pay taxes? Thank you
Generally, a foreign owned single member LLC that is a disregarded entity must file a Form 5472 each year. However, there are circumstances where it could require more filings. I would recommend watching our videos on 5472: th-cam.com/video/07-D3PTa7Bs/w-d-xo.html
Should individuals still use the 8949 and list as personal property sold for PayPal processing? I know they sold for a loss but I don’t know how much
Yes, that is the recommended approach for the sale of personal use assets.