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.

1. 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)
2. 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)
3. 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)
4. 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.

1. 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)
2. 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)
3. 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)
4. 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