Where Do I Report Form 1099-K on My Tax Return?
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- เผยแพร่เมื่อ 24 ส.ค. 2024
- For other videos covering Form 1099 filings, please see our playlist:
• Form 1099 Filings
Form 1099-K is issued by a payment settlement entity (PSE) to an individual or entity that is engaged in trade or business and uses the PSE to process payments for its account.
How to Report on Form 8949: • How to Report Form 109...
$600 Reporting Threshold: • $600 Rule for 2022. F...
Taxes on Personal Use Property: • U.S. Taxes on Sale of ...
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DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended, and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Self-help services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorney-client or confidential relationship. This video does not include information about every topic or issue related to these informational materials.
#Taxes #IRS #Form1099K
Might need to update with new video. It's $600 now
For a guide on how to report payments related to the sale of personal use items:
How to Report on Form 8949: th-cam.com/video/O_mz6Lk0alg/w-d-xo.html
$600 Reporting Threshold: th-cam.com/video/C5Z9fRNEIFU/w-d-xo.html
Taxes on Personal Use Property: th-cam.com/video/DmtxWqMCEqI/w-d-xo.html
Can you do a video about how to navigate on third party platforms on taxes and 1099k
Yes! We will do a video for some of the most common platforms and how to fill out the tax interviews
Clear as mud. I'm an independent contractor as a delivery driver. Just received CP2000 because the of Third Party Network Transactions 1099-K for 2019 amount was not reported on my Tax return. Now I have to deal with the IRS for the first time.
Usually you are better served by filing an amended tax return. The notice will compute taxes owed on gross income and no deductions. After taking deductions into account you may not owe any taxes
@@JasonDKnott Thank you for the video and your reply.
This is great and all but if you don't have a business and live in a state with lower reporting limits we're stuck dealing with this. I don't own a business - sold $800 worth of used stuff on eBay, essentially todays form of a garage sale. All losses. There has been little to no guidance on how to reconcile this number for the average "Joe".
I uploaded a video recently that covers how to report personal use sales:
th-cam.com/video/O_mz6Lk0alg/w-d-xo.html
How do calculate Uber mileage for schedule C
Ok in confused i got a 1099-k from my crypto compay I used to buy but the gross they pull doesn’t even come close to what I made or have on my account . But I mean not even close we talking about 160k different so how is that possible ? The only way is that they made a huge mistake
Mine is 800k don't know how
It is possible they made a mistake, so I would contact the custodian and try to get clarification. The gross amount on Form 1099-K are the gross sales proceeds totaling up from every time you sold crypto. The gross amount can be quite high, even if the trader incurred an overall net loss.
If you received a 1099-k but did not meet the minimum threshold of 200 transactions and $20,000 (I was well under this threshold) in sales are you still required to file for that?
A third party network only needs to report the amounts if the yearly activity exceeds those thresholds, 20k in gross and 200 transactions. However, there is no de minimis threshold for payment card transactions.
Hello Jason, for gross would that be the shipping, commission fees, and taxes. Or the total cost of sales, shipping the buyer paid and taxes.
great and informative video! So all in all, report actual gross income, then deduct any PayPal fees, supplies that one personally bought for their business, refunds? gross-deductions=actual gross?
Yes, exactly. The IRS wants to see your actual gross receipts. Any processing fees and credit card transaction fees should be separately stated as a business expense.
I got a 1099-K and a 1099-NEC from Uber do I just add them together and report the gross amount on line 1 of schedule C?
Thank you for this information. This was very helpful. I want to make sure everything is reported correctly and this was very useful.
You're welcome!
HI! Thanks for sharing.. i just received my first 1099 as well from paypal. I'm really lost on what to do next? where should i file it? and it says due on January 31? Thanks a lot i hope to hear from you.. God bless!
I'm glad you enjoyed the video. If you are operating a trade or business and process customer payments through Paypal, you will generally receive a Form 1099-K which reports the gross amount of payments processed by paypal during the year. If you're a U.S. taxpayer, these gross receipts are reported on your annual federal tax return (Schedule C if self-employed).
on Form 1099k, Do I enter the 1a. Gross/ammount of payment card/ third party network transactions as the income? or the Federal Income Tax witheld?
Saw you on a forums too when I googled questions and then I stumbled on this channel.
Your tax preparation fees are low for someone with a CPA and law background but I guess everything depends on marketing and sales.
$350 for personal return is low. What if they dozens of rental properties??
So this doesn’t count if you are just putting money on a card that you have been gifted… this is just for businesses and sales through the business right??
Unfortunately, the 1099-K reporting does not distinguish personal and business use sales. If you have personal transactions reported on a Form 1099-K related to personal use sales or transactions, you may still need to report these on your Form 1040. We have a video here:
th-cam.com/video/O_mz6Lk0alg/w-d-xo.html
Like your video, But for gig workers such as me who does survey's through sites like swagbucks and etc and makes couple of thousand a year on the side on top of regular income from work. I think it is okay to receive 109 k payments under your name and then report it under schedule C simply as online survey taking business. No need to go through making a corporation. This is only for people who are heavy into online business and receive payments in card form I think.
Yup, setting up a company isn't for everyone. A lot of it has to do with personal liability protection. If you earn money through surveys and aren't concerned with liability exposure, then the LLC or Corporate structure probably isn't necessary.
@@JasonDKnott Thanks for your clarification and I actually can follow your videos just because of simplicity and thoroughness.
The fee that was took by paypal will be considered as expenses and the withdrawals I did to bank account and payment that I sent will be considered as expenses. Please help
Hi , thank you for video on 1099k . Have reporting requirements changed for 2022? Selling on eBay profiting 3100.00. Minus shipping.
How do I find out if I owe the IRS for profit?
The reporting requirements for U.S. taxpayers have not changed. U.S. taxpayers are required to report their gross income from any source on their tax returns. If you are engaged in an active business, you are generally allowed to report business expenses and pay taxes on your net profits.
I did not understand one word of what you just said. I am trying to run a Poshmark and use PayPal and I already don’t know what I’m doing and now I find this out. Can you please or someone please explain this to me in a five year olds language
will i ran my shop for almost the full 4 months with no sales so i shut it down@CAMTHEMAN75
Where to report it for individual who get paid under his name, ??? With amazon
I recently posted a video on this issue.
www.udemy.com/user/jason-knott-2/
I sold $380 worth of CSGO skins how would this work for me?
Hi Jason, do i need to report 1099 K in 990 T in case of Non Profit Organization?
Hi Jason.
I got 1099K form from Airbnb (met $20 k but less 200 transaction), will Airbnb report this earning to IRS? Also can you make a new video on new threshold of $600 ??
Yes! If you received a 1099-K from AirBnb, it also means a copy of that was provided to the IRS.
Im kind of confused with this and tax nexus
The 1099-K is not the greatest form. All it does is report the gross amount of payment card transactions, so it is up to the recipient to determine the character of income and what is taxable.
Thanks for the information, liked and subscribed! So paypal issued me a 1099K but I'm a foreigner with a visa, how do I fill the 1040-NR?
If you are a non-U.S. person and receive a Form 1099-K, you need to carefully assess your U.S. tax residency, and whether your income from business activities is effectively connected income with a U.S. trade or business. Not all foreign persons that receive a Form 1099-K are required to file a U.S. tax return. If you are physically present in the U.S. on a work visa and meet the substantial presence test, generally you need to file a Form 1040 and not a Form 1040-NR. I would recommend speaking with a tax professional to discuss your circumstances and determine the appropriate tax filings. Thanks!
I am from New Jersey and doesn’t match with $20,000 threshold or 200 transactions... still etsy send me form K-1099. What should i do? I am an individual seller...
If you're engaged in the trade or business of running an online store and selling products to customers, you need to report the income on your tax return. You are allowed to deduct the cost of inventory and other trade or business expenses. For a sole proprietorship this information is generally reported on a Schedule C.
Hi Jason, I resold some things I bought and got a 1099 k for a little over 2k. My husband and I are filing joint. How do I report my costs for the items?
I would recommend watching some of our other videos on this topic related to Form 1099-K for personal use sales. If you sell property that is inventory in connection with a trade or business, then it generally goes on Schedule C. However, the one-off sales of personal use assets are reported differently. We have the video links in the description and pinned comment.
Do eBay and Paypal sales count as self-employed income, even if neither is a business account?
Hi, thank you for this video. I live in IL. I have a business PayPal account that I use for both personal and business transactions. I received only payments from friends and family in 2020 totaling about $7,000 (due to covid people were generous on my birthday, etc.) No one payed (gave) me more than $350, most were $50, $100 here and there and they used credit cards. This generated the 1099K as IL lowered the threshold for PayPal to report. In this instance is the PayPal 1099-K considered taxable income?
Paypal only reports gross payment transactions, so they don't distinguish between payments that are income, gifts, loans, etc. It is up to the recipient to determine the character of the payments. Generally if you receive gifts from friends and family members those receipts are not taxable income.
I Got a 1099-k from PayPal but what would I do if all my net profit is being held by PayPal since they banned me. Says I have a gross income of $25000 but PayPal is still holding $3000 of my profit.
If you're a cash basis taxpayer, you could make the argument that you haven't constructively received the sales until Paypal deposits them into your account. To be on the safe side, you would report all of the amounts as gross income in the current tax year, and if paypal refuses to pay out the amounts you can write them off on your taxes next year.
aye friend i have a square account for our family business but is under my name with no ssn or tin # the business is under my wifes name and she already filed her personal tax retun and now i have square asking me for a ssn or tin number is it going to be an issue or should i add her ssn and what can that affect us
so if an individual has a regular part time job with an employer and also a side hustle using cash app or paypal, you basically have to report both incomes in the same tax returns at the end of the year, correct?....im assuming in this case the 1099K form will come in the individual's personal social security number for the side hustle, correct?
if the Form 1099-K is issued to an individual using their personal name and SSN, then the income should be reported on the Form 1040. Trade or business income from a sole proprietorship is generally reported on Schedule C of Form 1040.
It's okay to use my name and ssn if I'm a sole prop right? Also as a recipient, i recieve this form already filled out, review it, then if its correct report the amount(or consolidated amounts from multiple 1099-K's on my 1040 or Schedule C? ☺👍
If you are a sole proprietor you can use your personal name and SSN when completing Form W-9.
@@JasonDKnott Thank you so so much! And as the recipient I don't fill out any part of it, just put it on my 1040? 😊
Hi there, I made around $2400 in sales of used personal items. I had no idea this form was a thing and didn’t think I’d get anything because i was underneath both thresholds, I now believe I’m in a state that has the $600 minimum so I understand getting the form however I’ve read some articles/videos/posts saying you only need to report if you NETTED $400. I actually lost money on goods since all items were used and sold for less than the original amount. I am in the process of itemizing cost of goods to be prepared, but do I need to report this? And just make sure to report cost of goods as business expenses?
Generally a loss on the sale of personal use property is not deductible, and it is generally not reportable either. You can only take losses on the sale of property or assets that are used in an active trade or business. If you report the proceeds from the sale of the property, you can set the cost basis equal to the proceeds which results in a zero gain/loss. I would speak with your tax advisor about the best way to approach the reporting, as each persons tax profile is unique to their individual circumstances.
Thank you for the video, under what category would I put how much I spent on merchandise? I buy my merchandise with credit card and sell via PayPal? Thank you much
If your purchasing merchandise which serves as your inventory, and then reselling that inventory, the merchandise purchases are generally categorized as cost of goods sold (COGS). If you are filing a corporate Form 1120, you would attach a Form 1125-A to report the COGS amounts.
Hi Jason. A friend of mine received a 1009-K with 1 transaction , the Box 1a is $600 and 1b is also $600. does she still need file this form?
Every U.S. taxpayer is required to report their gross income on their tax return, from whatever source derived. If these sales are related to a trade or business conducted by the taxpayer, the income must be reported, along with any allowable business expenses. If these are sales related to personal use items, then the items can still be reported. We have a video that covers personal use sales: th-cam.com/video/O_mz6Lk0alg/w-d-xo.html
i got one but everything on it is $0.00....
The 1099-K might have been issued in error, so I would contact the issuing party. Generally, only the 1099-K is issued if you have more than 20k in gross sales or 200 transactions. Some states have lower reporting thresholds if you live in a certain state.
Hi Jason I bought a business in November and I am clueless with taxes. I have a little over 20k in revenue every month and 1000 transactions Just to be clear: after I file my 1099-k I must then go and report a different tax return which is the 1040? How do I determine what I paid myself? I paid myself nearly nothing everything went back into inventory. Must I count inventory as income? I own a smoke shop
Form 1099-K is not prepared by the business owner, it is prepared by the company that processes your credit and payment card transactions, such as a bank or Paypal. Once your financial statements are prepared, you file taxes for your business, depending upon how your business is structured (e.g., corporation, S corporation, partnership, or sole proprietorship)
Hi Jason, Thank you for your video. I have 2 short term rental houses that I rent through Airbnb and through a personal business website. I receive my payments through Paypal. I now have a 1099K from Airbnb and from Paypal. The amounts on the 2 forms are not exactly the same because all of our customers do not use Airbnb. The income on the 2 different forms are duplicate income. How do I report my 1099Ks without making my income double for the year? Thank you for your time.
It is not uncommon for the amounts to vary on the Form 1099-K, because they are often inaccurate or double counted. Per the tax code and IRS rules, you should report your actual gross income, even if it is inconsistent with the 1099 reporting. For example, if you actually receive $10,000 in rental income, but the 1099-K shows $25,000 because of an error, report the $10,000.
Hi ! I'm sole proprietorship
What happen if i fill 1099-k form without filing 1040NR form ?
Can stripe account fill 1099-k automatically
Plz answer me
The 1099-K only reports gross payment transactions on an account. It does not determine whether the sales receipts will be subject to taxes in the U.S., because that determination is made at the entity level or the individual level.
Whether you need to file a Form 1040-NR will depend upon whether you are engaged in a U.S. trade or business, and if so, do you have income that is effectively connected with that U.S. trade or business.
What do I do if I got a 1099-k from PayPal after I already filed my taxes. How do I do this on an amended return?
If you have income and expenses in connection with a trade or business that should have been reported on a tax return, you'll need to file an amended tax return to report those income and expense items. It is possible to file a superseded return in certain circumstances.
I sold $1421 worth of items on ebay. 30 transactions. In Virginia, you get a 1099-k for anything over $600. So would I just add it as "ebay sales" in the schedule c section and simply enter $1421 in gross receipts? The 1099-k form has a TIN and an account number but I don't see anywhere to enter that in schedule C. Is gross receipts all I need to enter? Thank you.
If you were actively engaged in the trade or business of selling products on ebay, then you would report the gross sales proceeds on Schedule C, and take all deductions for expenses and costs of goods sold. If you were just selling personal items on ebay and it's not a business, then you don't report the sales proceeds on Schedule C.
@@JasonDKnott What if you are selling personal things and some products (for a profit) How do you distinguish between both on the Schedule C?
What if your gross is 23k? How much do you have to pay? I only do paypal and I'm really lost.
I do have 23k in gross and 220 transactions
A U.S. taxpayer is generally required to report all of their gross income, from whatever source derived. If you operate a U.S. business and received payments from customers via paypal, you generally need to report that income and pay income taxes on your net taxable income. A business is entitled to deduct ordinary and necessary expenses incurred with that trade or business.
My eBay account is past the minimum amount. The items I’m reselling are in a different name then the eBay account. Does that matter for deductions ?
For example the eBay account is in the name of bob bob but all the shoes resold on that account were bought on adidas by the name Jane Jane. Does it have to be the same name or it doesn’t matter ?
Do you pay state and local for a 1099k? Or just federal
whether you are subject to state and local taxes will largely depend upon your residency as the business owner. For example, a Florida tax resident is not subject to Florida state income taxes on their sole proprietorship business income, they are only subject to federal income taxes. If you live in a state that charges state income taxes, you likely owe state taxes.
Does the 1099k gross amount include sales tax?
It depends on the company issuing the Form 1099-K. Some processors include the sales tax collected in gross receipts, while others omit the sales tax from gross proceed reported on the 1099-K. It's always best to crosscheck the Form 1099-K with the annual reports provided by the processor and see if they included sales taxes.
@@JasonDKnott thanks! If it does include it do I still add 1099 amount in my tax return and deduct sales taxes under deductions ? or is it ok if I pick up my net amount of sales with no deductions. Is there a correct method ?
I'm a bit confused, the Form 1099-K instructions for payee in Box 1b says "if the box for third party network is checked, or these are third party network transactions, Card Not Present transactions will not be reported" does this mean the transactions are not taxable since its not reported. I need someone to explain. Thanks
The 1099-k reporting obligation falls on the PSE or other third party. It is the responsibility of each recipient to determine what amounts of gross receipts are taxable income.
So if Box 1a is less than 20,000, I don't have to file? (18 yo)
The 20k threshold is imposed on the payment settlement entity or third party merchant. A U.S. taxpayer generally reports all of their gross income from their business, even if the amounts fall below the 1099 reporting thresholds.
@@JasonDKnott Thank you.
I sold some of my stuff on ebay using paypal for total of $700 on four transactions. Paypal sent me a 1099k. What am i supost to do with it?
If you're actively involved in a trade or business and are selling products online, you would report your gross sales from the business on your personal tax return Schedule C, and take deductions for all of your ordinary and necessary expenses. If you're just selling personal items and you realize a loss on the sale, then you generally don't need to report those items. If you sell personal items for a gain, the IRS wants to tax the gains.
@@JasonDKnott if you sell personal items that you bought previously (i.e clothes, shoes, a tv, house knick knacks), are you able to deduct what you paid for them?
@@JasonDKnott What is the tax percentage liability for eBay sales gains?
Hello, I’m 14 and own an Etsy shop. Do I have to file my tax returns under my name or my parents name. I have made slightly over $22000. How would I go about this. Thanks!
I would recommend you work with your parents and their tax advisor to determine your tax filing obligations. Under most circumstances, a dependent can include their income with their parents tax filing. However, a dependent must file their own tax return if their gross income is more than $12,550 during the year (per 2021 tax numbers). You might need to file your own tax return...
Dude what do u sell to make that much at 14
I just received a 1099-K and it shows 86 transactions and $18707 in sales. Did something change?
There are both federal reporting thresholds and state level thresholds. If you fell below the 20k and 200 transactions, you may still get a Form 1099-K if you live in a state with the reduced reporting thresholds. Certain states set the transaction dollar volume to only $600 in gross payments.
Man the future sucks
Hopefully the IRS can make a few changes and maybe tax time won't be such a nightmare for American taxpayers. Then the future might look a bit better!
hey, i recently received a 1099k through paypal yet i only received a gross income of 600$ through friends and family, i don’t even own a business, so what do i do with it ?
Papal doesn't distinguish between income, gifts or loan amounts when funds are transferred through their network. If you received money from friends and family that was just a gift or a loan, then those amounts generally aren't taxable income to you. The recipient of a gift generally doesn't have any reporting obligations. The person who provided the gift may have to report the gift on a Form 709 if it exceeds their annual exclusion.
@@JasonDKnott Thank you so much !!
hello
Hi, thank you for this video. I live in IL. I have a business PayPal account that I use for both personal and business transactions. I received only payments from friends and family in 2020 totaling about $7,000 (due to covid people were generous on my birthday, etc.) No one payed (gave) me more than $350, most were $50, $100 here and there and they used credit cards. This generated the 1099K as IL lowered the threshold for PayPal to report. Is the PayPal 1099-K considered taxable income?
Paypal only reports gross payment transactions, so they don't distinguish between payments that are income, gifts, loans, etc. It is up to the recipient to determine the character of the payments. Generally if you receive gifts from friends and family members those receipts are not taxable income.