Hey remember that thing with the millions of new 1099-K Forms that were going to be sent out to taxpayers starting in January 2024?
The thing where everybody who used a “payment processor” to transact over $600 for the entire year of 2023 was going to receive a 1099-K? Meaning that all the “gig economy” / “side hustle” activities like Etsy, eBay, Facebook Marketplace, Venmo, CashApp, etc. were going to be “revealed” to the IRS?
You know–the thing that was going to cause massive amounts of confusion and chaos for both taxpayers and tax professionals?
IRS just canceled that thing–or, I should say, delayed that thing until next tax season.
For this tax season (tax year 2023), the “old” limits will apply. Meaning that taxpayers will only receive a 1099-K if:
- They processed over $20,000 in payments, and
- They processed more than 200 transactions.
These higher limits will drastically cut down on the number of 1099-K’s that will go out and, as such, will drastically cut down on the number of taxpayers running around like chickens with their heads cut off.
What’s more, the IRS has said they are raising the 1099-K reporting threshold for next tax season from $600 to $5,000.
So, if you’ve been stressing about how big of a mess the new 1099-K Thing is going to be, you can officially relax! 🙂
Happy Thanksgiving to you and your family!
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