
You ain’t safe! Just because the 1099K has been delayed doesn’t mean you won’t get one.
1/1/2023
Almost everybody dodged a bullet.
Because the IRS on 12/23/22 delayed people from getting a 1099K.
The tax Form 1099K reported all the money you were paid over $600.
Even money from side hustles, a babysitting job, garage sales and just stuff people buy and sell was gonna be taxed unless you can prove it shouldn't be!
I know crazy! But it could be worse...
The IRS delayed Form 1099 K (it’s actually 1099-K, however SEO is better with 1099K or 1099 K) and there’s a lot of fluff out there so I always go to the source and you should too...The IRS.
The below video is the last email from the IRS regarding FAQs brutally read line by line with commentary.
https://vimeo.com/785506085
December 30, 2022 was the last email for the year from the IRS regarding the 1099 K in which they updated the frequently asked questions again.
Their delay caused me a delay with my new book The Ultimate 1099 Guide because I saw this coming almost two years ago.
Go get a free download or the cheat sheet I put together.
The physical guide would be best as you can check examples, see the filled in forms and even take a quiz about 1099s, and much more!
Anyway let me try to summarize how the 1099-K affects the individual and the self-employed person.
The below did not happen in 2023 regarding the 1099-K. It was delayed until 2024.
It still doesn’t mean you won’t get a 1099-K.
It also doesn’t mean you shouldn’t plan because the IRS has given you a year to do so!
So what should have happened starting in 2023 re: Form 1099-K?
INDIVIDUAL — Classified as a non business person. A hustler. There are basically four situations in regards to a 1099-K for individuals.
- You received a payment → Payment goes through 3rd party (you pay a fee i.e. Paypal, Square, Cash App, etc.) → Money arrives in your bank account → 1099-K (If over $600)
- You received a payment → eBay, Amazon, Etsy, Shopify, SoundCloud etc. (they take a fee) → Your money arrives in your bank account → 1099-K (If over $600)
- You received a payment for your services→ Uber, Lyft, DoorDash etc. → Your money arrives in your bank account → 1099-K (If over $600 or could be any amount)
- You received a payment → Payment goes through 3rd party (*Zelle no fees) → Your money arrives in your bank account → No 1099-K from *Zelle
*Zelle doesn’t give 1099-Ks but you still are not safe as Zelle is owned by a group of banks who might eventually give up your deposit information to the IRS.
SELF-EMPLOYED — There are basically four situations in regards to a 1099-K for Businesses.
- You sell products or services → Merchant account (usually through your bank and you pay fees) → Your money arrives in your bank account → 1099-K (If over $600 or any amount really)
- You sell products or services → Payment goes through 3rd party (you pay a fee i.e. Paypal, Square, Cash App, etc.) → Money arrives in your bank account → 1099-K (If over $600)
- You sell products or services → eBay, Amazon, Etsy, Shopify, SoundCloud etc. (they take a fee) → Your money arrives in your bank account → 1099-K (If over $600)
- You sell products or services → Payment goes through 3rd party (*Zelle no fees) → Your money arrives in your bank account → No 1099-K from *Zelle
*Zelle doesn’t give 1099-Ks but you still are not safe as Zelle is owned by a group of banks who might eventually give up your deposit information.
Business owners of all types, even some Corporations will get a 1099 K from your merchant account or a third party processor like Square, Stripe, Venmo, Paypal, Cash App and others that you use to collect your money.
As of now, 2023 the 1099-K stays the same for the self-employed which is $20,000+ or 200 transactions (sales).
P.S. Go get a free download or the cheat sheet I put together.
The physical guide would be best as you can check examples, see the filled in forms and even take a quiz about 1099s, plus much more.
Thank you for reading!
-Steph
Knowledge is everywhere
I write books because I have knowledge I want to spread. I hope my words help someone. Motivate someone. Save someone from making a bad decision.
-Steph
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