#1099k

[cpapartners]

IRS phases in Form 1099-K threshold at $2,500 in 2025

The Internal Revenue Service extended its transition relief for the new Form 1099-K information reporting threshold.

[form1099]

Which 1099 Form Do I Use?

The 1099 series includes various forms used to report different types of income to the IRS. Use Form 1099-MISC for miscellaneous income like rent or prizes, 1099-NEC for non-employee compensation, and 1099-INT for interest income. Choosing the right form depends on the type of income you need to report.

[numbersquadtax]

Attention self-employed heroes! 💼 Tax season just got easier with clearer guidelines on 1099-K reporting. 💡 Get ready to conquer taxes like a boss! 💪

[skfinancial]

If you are uncertain about your taxable income or whether you’ll receive a 1099-K, it’s wise to consult a qualified tax professional. Call +1 (813) 322-3936 or Visit skfinancial.com for Expert consultation

[protom-lad]

Asking for advice/reassurance on tax shit

Is there anybody who follows me who knows their stuff about declaring hobby income in their taxes?

im trying to figure out if its safe to declare what ive made from my writing comms in 2022 as hobby income and it wont get Hyper scrutinized and fucked over by the IRS

my 1099k finally came out and its higher than i expected and i'm really anxious now

[bllsbailey]

JD Vance Lights a Match to the Tinder That Is Kamala Harris' 'Policies'

GOP Vice Presidential candidate JD Vance's social media game is always on point. The Kamala Harris-Tim Walz campaign and their other sock puppet accounts constantly put out a raft of lies and misstatements about the Trump-Vance campaign and their policies. Now that the Harris-Walz campaign has finally decided to put policy points on their website, Vance was Johnny-on-the-spot in not only detailing the policies listed but also bringing the receipts, which show how many of their points are not only amorphous but pure gaslighting.

— JD Vance (@JDVance) September 9, 2024

It has been 50 days since Kamala Harris became the presumptive nominee of the Democratic Party.  In the dead of night yesterday, she finally released her campaign policy page. Here's what I think of it 

No kidding. While the Trump-Vance campaign and all their surrogates tirelessly work to lay out policy points at every rally, event, and media appearance, Harris-Walz keeps pumping the vibes, dancing, and jigging, and offering fake accents. What took her so long? 

Vance expounded in a very lengthy X thread. I will not cover all the points the senator from Ohio hit, but I will focus on the ones where Harris is most deceptive and most vulnerable: taxation, business, and the border.

Vance posted:

— JD Vance (@JDVance) September 9, 2024

1) Kamala Harris claims she wants to cut taxes for middle class families, but here's what's in her plan:  IRS Audits for working families: Getting audited is a horrendous experience, even if you’ve done nothing wrong. Harris cast the tie-breaking vote to hire 87,000 IRS agents to audit more people. As recently as last summer, 63% of new audits fell taxpayers earning less than $200,000. 

That's you and me, folks. Every person and small business that I know who has ever been audited earned under that $200,000 threshold annually. So, expect more of the same with a Harris-Walz administration. Meet the new boss, same as the old boss. 

Vance continues,

The IRS, like Kamala Harris, claims that it’s not going to increase audits on people making under $400K, but the Treasury Inspector General stated the agency’s strategic plan, “did not include specifics on how the IRS was going to ensure it met this commitment.” That’s because they have no intention of ensuring they’re not going to audit middle class families—that’s where they’re going to find the money to pay for their massive spending proposals.  Treasury Secretary Janet Yellen, under questioning in the House, could not deny that 90 percent of new audits under the IRA would be on households earning less than $400,000. The nonpartisan Government Accountability Office found that the majority of additional taxes the IRS recommended from audits from 2010-2021 came from taxpayers with income less than $200,000. 

Harris could have pointed out ways she plans to mitigate the damage caused by these policies; instead, she simply rehashes what she accomplished as VP Harris with her pen and phone. These efforts at reinvention and presenting old ideas as if they are fresh seem to be a pattern with Harris and her campaign.

It’s even harder to pretend that taxing working men and women isn’t their focus when you think about the reporting requirement Biden-Harris signed into law to require businesses to fill out a 1099K form on transactions over $600 made using third-party payment platforms. The reporting threshold before their bill was $20,000.  There’s no minimum number of transactions in their bill, so a single transaction over $600 that triggers the reporting requirement creates more paperwork. Even Senate Democrats have backed different bills to blunt the impact of this enormously burdensome mandate.  The Government Accountability Office found this aspect of the Harris tax record would result in at least 30 million new 1099K forms getting sent out in 2024. The Joint Committee on Taxation found that over 90 percent of the tax burden will fall on middle class families and gig workers. 

I have written extensively on how adversarial this administration is toward freelancers, independent professionals, and entrepreneurs. Gig workers and certain independent professionals are small businesses. As an independent journalist, I am a small business of ONE, so me having to take the time to figure out the changes in draconian tax measures and juggle new paperwork robs me of my ability to pursue opportunities for advancement and income generation, as well as earning the revenue needed to pay these ridiculous taxes. It's also a killer to innovation and collaboration, but as Vance points out, this is a feature, not a bug.

The Biden-Harris tax plan, as explicitly outlined in their formal budget request to Congress would increase taxes by $5 trillion. That’s going to stack on top of her inflationary climate spending bills and drag the economy down further.  It’s been estimated that “the tax changes in the Biden-Harris budget would reduce long-run GDP by 1.6 percent…wages by 1.1 percent, and employment by about 666,000 full-time equivalent jobs.”  That’s nearly a million people out of work and lower wages for everyone in order to shift money towards the Harris Green New Deal—as she said to CNN in her first interview after nearly a month as the Democratic nominee, her values haven’t changed on that policy, which she supported enthusiastically when she was in the Senate. 

Maya Angelou accurately said, "When someone shows you who they are, believe them the first time." On Sunday, VT Sen. Bernie Sanders already said the quiet part out loud: Harris will say whatever she needs to say to get elected. So, why are we still expecting Harris to morph, pivot, or become some fiscal expert when she has never had to build a business, balance a budget, or go through anything that could equate to attaining a profit or suffering a loss? She's been on the state or federal dole her entire life, it's all she knows and she assumes it will always be there for her to manipulate. 

All in all, the Biden-Harris record has been a massive wealth transfer from working people to the Green New Deal’s constituencies—the Harris tax plan is going to be more of the same, no matter what kind of claims she makes during the campaign.⁩

Vance further moves into just what a Harris presidency promises (or doesn't promise) for small business and "growth."

3) Vice President Harris claims she'll "take on the everyday obstacles and red tape that can make it harder to grow a small business."  However, under her administration, the SEC has promulgated at least 47 rulemakings, the majority of which have not been mandated by Congress, and we've seen Treasury enact burdensome compliance regulations, with some even aimed at small businesses, like the Administration's preferred implementation of the Corporate Transparency Act.  This doesn't sound like cutting red tape to me. It sounds like the opposite: enacting overbearing regulations that stifle innovation and kill job creation.

Vance did not mention that Harris plans to sign into law The PRO Act, which is California's AB5 on steroids, sneaking in the same ABC Test that destroyed millions of independent contractors and small businesses in California. California has become a national warning on a number of levels, but no more so than the businesses and income generators who have fled the state because of its foolishly instituted and poorly executed anti-business policies. From job creators like Elon Musk to small beans entrepreneurs like Jennifer Oliver O'Connell, we have all said enough to the regulation and destruction of income generators. These are the plans Kamala Harris has in store for the entire nation; don't be fooled. 

Where Vance perfectly skewers Harris' lies is in her complete whitewashing of her Border Czar record.

7) Kamala Harris says she wants to secure our borders. Her record tells a different story: Harris touts her record prosecuting international criminals as California’s Attorney General.  One of the reasons why California has so much migrant crime is because it is a sanctuary state that shields illegal aliens from deportation. Hence foreign criminals feel more protected in California. Another thing Attorney General Harris did as California’s AG was write a 2015 letter to the US Senate defending California’s sanctuary state policies and opposing a bill that would penalize the state’s noncooperation with federal immigration law. It is safe to assume that there would have been a lot fewer migrant criminals to prosecute in California if the state and AG Kamala had allowed ICE agents to do their jobs and deport them.

This is epic, and a foolish move by the Harris campaign to have Harris play as though she was some tough prosecutor when she is complicit in the demise of law and order not just in California, but throughout the nation. I wrote in July about Harris' deliberate and calculated actions to further the sanctuary state status of California and her advocacy to not only allow illegal aliens to be released into the general populace, but championing their becoming licensed attorneys on the taxpayer dime!

California GOP Congressman Kevin Kiley's timely contribution to the conversation was unearthing a 2015 letter AG Harris wrote to the Senate in opposition to the bill S. 2146, which sought to defund states (like California) that adopted sanctuary policies. 

But Vance slices and dices Harris over her biggest whopper: her supposed support of the bipartisan border bill that she claims Trump convinced Republicans not to back. Vance outlines why the bill was DOA and why she is lying about border crossings being at a four-year low after leaving the barn door open during the past three and a half of those four years to allow criminal illegals and terrorists to disappear into the country. 

Kamala Harris then claims to have supported a bipartisan border security bill that would have deployed more agents and drug scanners. I believe she is referring to Sen. Chris Murphy’s Border Act of 2024 (S.4361). What she won’t tell you is that the bill also codifies catch-and-release, allows up to 1.8 million illegals to enter before the border could be closed, gives billions of taxpayer dollars to the same NGOs that are driving the invasion and expands the executive parole powers used by Biden instead of limiting them. The bill’s author Sen. Murphy put it best when he admitted that, under his bill, “the border never closes.” I think all of that is totally unacceptable when our nation is facing a historic border crisis, which is why I and my Republican colleagues opposed it. Kamala Harris should have instead pushed for a standalone vote on new border agents and scanners.  Kamala Harris also brags that, thanks to her efforts, border crossings are currently at 4-year lows. It is worth remembering that almost four years ago, on their first day in office, Biden and Harris issued executive orders that stopped border wall construction and stopped deportations. They then rescinded Trump’s Remain In Mexico policy, allowing every migrant with a dubious asylum claim to enter America while waiting in an years-long case backlog. As a direct result of these actions, America endured consecutive months record-breaking illegal immigration. Only once their Border Act was rejected, and border security consistently polled as a top concern of voters, did Biden and Harris issue orders that give the appearance that they care about illegal border crossings. She cannot take credit for nominally lower border crossing numbers after she spent almost four years holding the border wide open. 

BOOM. Now Harris wants to convince you that after letting the fox into the henhouse, and letting that same fox kill and eat all the chickens, that this fox now deserves to take up residence in the farmhouse. 

But the most destructive part of the Kamala Harris border plan is where she says that she wants to give her 8.5+ million illegal aliens an “earned pathway to citizenship,” which means rewarding illegal aliens with amnesty and the right to vote in our next election. Promising amnesty and citizenship will create a gigantic magnet for illegal immigration that will entice people around the world to race across our borders. 

We are already seeing the destruction of whole communities in Aurora, CO, Springfield, OH, and now in even smaller towns like Sylacauga, AL, where blanket parole, social security numbers, and in some cases jobs, have been given to Haitian migrants. Now many of them are now jobless, homeless, and stealing livestock and taking over private property. Vance warns to expect more of the same across the nation should Kamala Harris be allowed to become president.

If there’s a takeaway from this section, it’s that Kamala opened our borders to 8.5+ million illegal aliens, lied about it for almost four years, blamed others when she got caught and now wants to reward those illegals with citizenship.⁩

The rest of the post is equally detailed and just as devastating to Harris' supposed policies. Every voter, no matter what their political leaning, could learn and glean from it.

[ocdhuacheng]

Fucking excuse me why did stripe send me (and the IRS) a 1099k about my account I did NAWT process more than $20k on there. What the fuck

[lunarsilkscreen]

Cash App and Taxes

A lot of below the poverty line people use Cash App to get paid for odd jobs. By reducing the burden on apps like these to $600 You're essentially robbing from the poor.

$600 isn't even onemonths salary for most people.

Is what I would say if it applied to personal accounts. Since it only applies to business accounts, it makes your life easier since the cash app does A LOT of tax prep work for you.

These businesses are required to send you a 1099K, which covers ALL OF YOU TRANSACTIONS THROUGH THE APP. So you don't need to do them yourself, but also gives you verification that your records are correct if you do them yourself. (Which reduces the need to be audited.)

If they aren't correct that's an avenue you'll have to take up with them.

Which means all you need to do is furnish your own expenses to be contrasted with your income to figure out your overall tax burden.

And if you did it through the app, or have a business checking card, credit card, or preloaded visa, there's apps that can just take your transaction and load it into Microsoft Excel (Or Google Spreadsheets [Or the "you need a budget app])

Then all you need to do is take those two documents, 1099K and your expense spreadsheet to the IRS freefile website.

https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

The only problem is that apparently, it's only free through October 16 instead of through April. (When did that change?) That seems like a change to appease what should be free file programs period.

The Tax Prep Industry is for people that need to go over every little thing. Not for your average joe.

[eddiesma]

Important new laws with selling for 2024. Receiving anything more than $600 via PayPal , apps, etc requires filling out form 1099k and being taxed.

We are being taxed to DEATH.

[cpapartners]

IRS will receive 30M more 1099-Ks By Michael Cohn Thanks to the lower threshold, the service expects to receive about 44 million 1099-Ks in 2024, up from about 14 million.

[form1099]

Form 1099 Vs 1099 K: Key Differences

Our detailed comparison shows the essential differences between Form 1099 and 1099 K. Ensure you're using the correct form for accurate income reporting. Visit form1099online.com for comprehensive guidance and support.

[ladymariayuri]

cannot put into words how devastating it was to open up my paypal and see “we need your social security number” and “25% of your transaction has been sent as backup withholding to the irs” and “this will be reported on a 1099K form” I DONT KNOW HWAT THESE WORDS MEAN IM CRYING AND THROWING UP AND SCREAMING WHYYYYYYYYY

its 9am on a friday and im googling fucking 1099 K forms and trying to kill the IRS with my mind because a family member accidentally marked a transaction as “business” and not “friends and family” and we lost 20 dollars to the fucking void i hope everybody in the world dies

[johnnychapman]

Decoding the 1099 K Form with Form1099online.com

Navigate the world of IRS Form 1099 K effortlessly with our informative video. Learn when you'll receive this essential tax document for credit/debit card transactions and third-party network payments. Trust Form1099online.com, your reliable partner offering the best deals and seamless filing services.

[lechet]

This is - best as I can figure -  accurate as of 1/2/2022. They’re talking about adding new forms or new places on the old forms to accommodate the different money that could be reported on a 1099-K but they ain’t come out w/ ‘em yet and probably won’t till it’s closer to the end of the year 2022.

Everything in here is subject to change.

---------- ---------- ---------- ---------- ----------

The new limit on Paypal, Venmo, CashApp, Zelle, etc, where if $600 goes through their sites, they'll have to send you a 1099-K and you'll be expected by the IRS to tell them where that money came from, is for ANY money. Gifts, sales, money that comes from selling a $2500 lawnmower on ebay for $600 (incurring a $1900 loss), that amount all gets added up and stuck on the 1099-K. 

What is a 1099-K? It’s informational, telling everyone about what all went through their servers. It is a way for them to say “Hey, this amount of money went through our things. They need to be filing taxes on some of it, IRS. We just had to let you know.” 

Gifts (unless they're an insane amount) and sales at a loss are generally not necessary to report to the IRS. However, since you're getting a 1099-K, the IRS will now expect you to tell them where this money came from.

---------- ---------- ---------- ---------- ----------

So let’s say your 1099-K included the following:

$100 - Gift

$600 - Lawnmower sale from above

$1,200 - Commission money made from art

Your 1099-K would be for $1,900.

The only amount that's actually taxable per the IRS is the commission money, that $1,200.

Where you report the $1,200 depends on what sort of activity your art-making is.

If your art is A HOBBY, you fill the income from your 1099-K that you receive from Paypal or whoever on Schedule 1, Form 1040, line 8, "Other income” with the explanation of “income from hobby.”

You are NOT allowed to claim any kind of expenses or deductions from this sort of income post-2018.  So if you spent $300 for supplies for your knitting, and sold two sweaters for a total of $300, breaking even, the IRS doesn’t care. You’ll have to report the income from this as $300.

If your art IS A BUSINESS, you file the income on a Schedule C as a business entity. You'll be subjected to self-employment taxes but have the opportunity to write off deductions, such as if you had to buy a new tablet, a PORTION of your bills that are RELEVANT to the business, and other things.

IS IT A HOBBY OR A BUSINESS?

Do you conduct it in a businesslike manner, and maintain accurate books and records?

Do you have personal motives in carrying on in the activity?

Do you intend to make it profitable?

Do you depend on the income for your livlihood?

Are your losses due to circumstances beyond your control (or are theynormal in the startup phase of your type of business)?

Do you have the knowledge needed to carry on the activity as a successful business?

Have you been successful in making a profit in similar activities in the past?

Has it made a profit for years, and how much profit does it make?

Do you expect to make a future profit from the appreciation of assets used in the activity?

The IRS cares most about if you've consistently been shown to make profits from the hobby for the last 3 to 5 years. At that point they’d consider it more of a business than a hobby.

---------- ---------- ---------- ---------- ----------

So we know where to report the $1,200 for the art. What about the other $700 from the gift and lawnmower sale?

You absolutely should tell the IRS about this other money. If you don’t, they’ll automatically send you a thing asking for an explanation for it.

I would report this amount on Schedule 1, Form 1040, line 8, “Other Income”. If your art sales went here, then the explanation could be “Income from hobby + gifts and yard sales.”

Down below it, you could put an Adjustment to Income, 24-Z, in the amount of $700, and list what it’s for. “Other money from 1099-K, not taxable / gifts and yard sale at a loss” or something similar. Alternatively, you could attach an explanation to your tax return. 

As long as it seems reasonable, the IRS likely won’t bother you with it. The main thing is that you just let them know somewhere what is up with this money.

---------- ---------- ---------- ---------- ----------

Keep records of everything beginning from now on. Anything that goes into your accounts with any of these third party money movers, make notes for it.  That $60 your sister repaid you through Zelle for taking her family out to eat the other day. That $100 you were CashApp’d at a yard sale, reselling your Twisted Fate League of Legends statue you bought at $250 4 years ago. That $30 you got from doing a headshot of a male Viera when they paid their Paypal invoice.

Just in case they ask you to prove anything from these 1099-Ks from now on. They love extensive documentation.