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As of December 23November 21, 2022 2023 the IRS has delayed new $600 limit to Tax Year 20231099-K reporting requirements by third-party networks to 2024. See IR-20222023-226221 for more information. The pre-existing rules are still in place . For tax year 2022, taxpayers will receive Form 1099-K if they receive over $20,000 through third-party network transactions and have over 200 transactions. for tax year 2023. |
New Third-Party Network Transactions (1099-K) Reporting Requirements
Beginning with tax year 20232024, individuals who receive $600 $5,000 or more through a third party network transaction will receive Form 1099-K (this was intended to be 2022 but IRS has delayed to tax year 2023)
This includes apps such as Venmo, Uber, Lyft, Cash App, Zelle, PayPal, E-bay, etc.
Taxpayers must report Form 1099-K on their tax return as income if the funds were received for the sale of goods and servicesIf amounts on Form 1099-K are incorrect the taxpayer should contact the issuer
2024 will be treated as a “phase-in year” this means that following 2025 we can anticipate the $600 threshold to take effect
Many taxpayers may still receive Form 1099-K in 2023 even though the IRS has delayed the reporting for the third party transactions, keep in mind taxpayers should be reporting all income for goods and services, regardless of the IRS reporting requirements
If taxpayer receives an incorrect 1099-K, they must contact the issuer, not the IRS